Exercise 16-16A Indirect: Cash flows spreadsheet P4 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 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. The only noncash expense was $70,000 of depreciation. d. Purchased plant assets for $90,000 cash. e. Notes payable of $20,000 were issued for $20,000 cash. f. $50,000 increase in accounts receivable. g. $30,000 decrease in inventory. h. $10,000 decrease in accounts payable. SCORETECK CORPORATION Spreadsheet for Statement of Cash Flows-Indirect Method For Year Ended December 31, 2021 Dec. 31, 2020 Balance Sheet-Debit Bal. Accounts Cash $ 80,000 Inventory Accounts receivable Plant assets Balance Sheet-Credit Bal. Accounts Accumulated depreciation Accounts payable 120,000 Analysis of Changes Debit Credit Dec. 31, 2021 $ 70,000 170,000 250,000 220,000 600,000 690,000 $1,050,000 $1,150,000 $ 100,000 $170,000 150,000 140,000 Notes payable 370,000 390,000 200,000 200,000 230,000 250,000 $1,050,000 $1,150,000 Common stock Retained earnings Statement of Cash Flows Operating activities Net income Increase in accounts receivable Decrease in 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