1 Cash Flow - Indirect Method Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect method. (The statement of cash flows 3 lis not required.) (Enter all amounts as positive values.) 4 Additional Information 5 a. Net income for the year was $117,000. 6 b. Dividends of $114,000 cash were declared and paid. 7 c. The only noncash expense was $87,000 of depreciation. 8 d. Purchased plant assets for $87,000 cash. 9 e. Notes payable of $37,000 were issued for $37,000 cash. 10 f. $87,000 increase in accounts receivable. 11 g. $37,000 decrease in inventory. 12 h. $27,000 decrease in accounts payable. 117,000 114,000 87,000 87,000 37,000 87,000 37,000 27,000 03-Dec $94,000 BLUE RIDGE CORPORATION Spreadsheet for Statement of Cash Flows-Indirect Method For Year Ended December 31 Analysis of Changes 01-Jan Debit Credit 19 Balance Sheet-Debit Bal. Accounts 20 Cash $131,000 21 Accounts receivable 137,000 22 Inventory 284.000 23 Plant assets 617,000 24 Totals $1,169,000 25 Balance Sheet-Credit Bal. Accounts 26 Accumulated depreciation $117,000 27 Accounts payable 184.000 28 Notes payable 387 000 29 Common stock 217.000 30 Retained earnings 264.000 31 Totals $1,169,000 32 117,000 Statement of Cash Flows Operating activities 3 Net income Increase in accounts I receivable Decrease in inventory Decrease in accounts payable Depreciation expense Investing activities Cash paid to purchase plant assets 87.000 Financing activities Cash paid for dividends Cash from issuance of notes Problem 3 37 0001 117,000 Statement of Cash Flows Operating activities Net income Increase in accounts receivable Decrease in inventory Decrease in accounts payable 7 Depreciation expense 0 Investing activities Cash paid to purchase plant 0assets 87.000 2 Financing activities 3 Cash paid for dividends Cash from issuance of notes 4 payable 37 000 154.000 87.000 ON