Complete the following spreadsheet in preparation of the statement of cash flows. (The statement of cash flows is not required.) Prepare the spreadsheet as in Exhibit 16A.1; report operating activities under the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following transactions and events a through h.

a. Net income for the year was $100,000.

b. Dividends of $80,000 cash were declared and paid.

c. Scoreteck’s only noncash expense was $70,000 of depreciation.

d. The company purchased plant assets for $70,000 cash.

e. Notes payable of $20,000 were issued for $20,000 cash.

f. Change in accounts receivable.

g. Change in merchandise inventory.

h. Change in accounts payable.

SCORETECK CORPORATION

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Spreadsheet for Statement of Cash Flows-Indirect Method For Year Ended December 31, 2013 Dec. 31, 2012 Balance Sheet-Debit Bal. Accounts Cash $ 80,000 Accounts receivable 120,000 Merchandise inventory Plant assets 250,000 600,000 $1,050,000 Balance Sheet-Credit Bal. Accounts Accumulated depreciation Accounts payable Notes payable Common stock Retained earnings Statement of Cash Flows Operating activities Net income Increase in accounts receivable Decrease in merchandise inventory Decrease in accounts payable Depreciation expense Investing activities Cash paid to purchase plant assets Financing activities Cash paid for dividends Cash from issuance of notes Analysis of Changes Debit Credit Dec. 31, 2013 $ 60,000 190,000 230,000 670,000 $1,150,000 $100,000 $170,000 150,000 140,000 370,000 390,000 200,000 200,000 230,000 250,000 $1,050,000 $1,150,000