based on the information provided below, complete the following worksheet to be
ID: 2351600 • Letter: B
Question
based on the information provided below, complete the following worksheet to be used to prepare the statment of cash flows using the indirect method.A. net income for the year was 30000
b.dividends of $10000 were declard and paid
C. stylish's only noncash expense was depre ciation which totaled $50000
D.the company purchased plant assets for $70000
E.notes payable in the amount of $40000 were issued during the year for each.
cash flows-indirect method
for year ended decemeber 31.2011
analysis of changes
12/31/10 DR CR 12/31/11
Balance sheet-Dr
cash 70000 60000
accounts receivable 180000 190000
merchandise inventory 200000 230000
plant assets 500000 570000
total 950000 1050000
Balance sheet-cr
accumulated depreciation 100000 150000
accounts payable 170000 160000
notes payable 350000 390000
capital stock 200000 200000
retained earnings 130000 150000
total 950000 1050000
statement of cash flows
operating activities:
net income
inrease in accounts receivable
increase in merchandise inventory
decrease in accounts payable
depreciation expense
investing activities:
cash paid to purchase plant assets
financing activities:
cash paid for dividends
cash received frome note payable
Explanation / Answer
statement of cash flows operating activities: net income 30,000 inrease in accounts receivable 10,000 increase in merchandise inventory 30,000 decrease in accounts payable 10,000 depreciation expense 50,000 investing activities: cash paid to purchase plant assets 70,000 financing activities: cash paid for dividends 10,000 cash received frome note payable 40,000
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