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based on the information provided below, complete the following worksheet to be

ID: 2351632 • 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