Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am missing something, help. Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect method. (The statement of cash

I am missing something, help.

Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect method. (The statement of cash flows is not required.) (Enter all amounts as positive values.)

Additional information:

  1. Net income for the year was $100,000.
  2. Dividends of $80,000 cash were declared and paid.
  3. The only noncash expense was $70,000 of depreciation
  4. Purchased plant assets for $70,000 cash.
  5. Notes payable of $20,000 were issued for $20,000 cash.
  6. $70,000 increase in accounts receivable.
  7. $20,000 decrease in inventory.
  8. $10,000 decrease in accounts payable.

image text in transcribed

SCORETECK CORPORATION Spreadsheet for Statement of Cash FlowsIndirect Method For Year Ended December 31, 2019 Analysis of Changes Dec. 31, 2018 Dec. 31, 2019 Debit Credit Balance Sheet-Debit Bal. Accounts Cash $ 80,000 $ 60,000 Accounts receivable 120,000 70,000 190,000 Inventory 250,000 20,000 230,000 Plant assets 600,000 70,000 670,000 $ 1,050,000 $ 1,150,000 Balance Sheet-Credit Bal. Accounts Accumulated depreciation $ 100,000 70,000 $ 170,000 Accounts payable 150,000 10,000 140,000 Notes payable 370,000 20,000 390,000 Common stock 200,000 200,000 Retained earnings 230,000 80,000 250,000 $ 1,050,000 $ 1,150,000 Statement of Cash Flows Operating activities Net income 100,000 Depreciation expense 70,000 Increase in accounts receivable 70,000 Decrease in inventory 20,000 Decrease in accounts payable 10,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Internal Auditing Appraising Operations And Controls

Authors: Victor Z. Brink, Herbert N. Witt

4th Edition

0471080977, 978-0471080978

More Books

Students also viewed these Accounting questions

Question

1.Which are projected Teaching aids in advance learning system?

Answered: 1 week ago

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is the relationship between humans and nature?

Answered: 1 week ago