177. Based on the information provided below for Krackle Corp., complete the following worksheet to be used to prepare the statement of cash flows using the indirect method. (a) Net income for the year was $30,000.(b) Dividends of $10,000 were declared and paid.(c) Krackle’s only noncash expense was depreciation which totaled $50,000.(d) The company purchased plant assets for $70,000.(e) Notes payable in the amount of $40,000 were issued during the year for cash. Krackle Corporation Spreadsheet for Statement of Cash Flows—Indirect Method For Year Ended December 31, 2015 Analysis of Changes 12/31/14 Debit Credit 12/31/15 Balance Sheet—Debits Cash............................ 70,000 60,000 Accounts receivable................. 180,000 190,000 Merchandise inventory............... 200,000 230,000 Plant assets....................... 500,000 570,000 950,000 1,050,000 Balance Sheet—Credits Accumulated depreciation............. 100,000 150,000 Accounts payable................... 170,000 160,000 Notes payable..................... 350,000 390,000 Capital stock...................... 200,000 200,000 Retained earnings................... 130,000 150,000 950,000 1,050,000 Statement of Cash Flows Operating activities.................. Net income................... Increase 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 from note payable..... Krackle Corporation Spreadsheet for Statement of Cash Flows—Indirect Method For Year Ended December 31, 2015 Analysis of Changes 12/31/14 Debit Credit 12/31/15 Balance Sheet—Debits Cash ............................ 70,000 60,000 Accounts receivable .................. 180,000 f 10,000 190,000 Merchandise inventory ............... 200,000 g 30,000 230,000 Plant assets ....................... 500,000 d 70,000 570,000 950,000 1,050,000 Balance Sheet—Credits Accumulated depreciation ............. 100,000 c 50,000 150,000 Accounts payable ................... 170,000 h 10,000 160,000 Notes payable ..................... 350,000 e 40,000 390,000 Capital stock ...................... 200,000 200,000 Retained earnings ................... 130,000 b 10,000 a 30,000 150,000 950,000 1,050,000 Statement of Cash Flows Operating activities .................. Net income ................... a 30,000 Increase in accounts receivable ...... f 10,000 Increase in merchandise inventory .... g 30,000 Decrease in accounts payable h 10,000 Depreciation expense ............ c 50,000 Investing activities Cash paid to purchase plant assets .... d 70,000 Financing activities Cash paid for dividends ........... b 10,000 Cash received from note payable ..... e 40,000 250,000 250,000

177. Based on the information provided below for Krackle Corp., complete the following worksheet to be used to prepare the statement of cash flows using the indirect method. (a) Net income for the...

177. Based on the information provided below for Krackle Corp., complete the following worksheet to be used to prepare the statement of cash flows using the indirect method.

(a) Net income for the year was $30,000.
(b) Dividends of $10,000 were declared and paid.
(c) Krackle’s only noncash expense was depreciation which totaled $50,000.
(d) The company purchased plant assets for $70,000.
(e) Notes payable in the amount of $40,000 were issued during the year for cash.

Krackle Corporation Spreadsheet for Statement of Cash Flows—Indirect Method For Year Ended December 31, 2015
		Analysis of Changes
	12/31/14	Debit	Credit	12/31/15
Balance Sheet—Debits
Cash............................	70,000			60,000
Accounts receivable.................	180,000			190,000
Merchandise inventory...............	200,000			230,000
Plant assets.......................	500,000			570,000
	950,000			1,050,000

Balance Sheet—Credits
Accumulated depreciation.............	100,000			150,000
Accounts payable...................	170,000			160,000
Notes payable.....................	350,000			390,000
Capital stock......................	200,000			200,000
Retained earnings...................	130,000			150,000
	950,000			1,050,000

Statement of Cash Flows
Operating activities..................
Net income...................
Increase 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 from note payable.....

Krackle Corporation Spreadsheet for Statement of Cash Flows—Indirect Method For Year Ended December 31, 2015
			Analysis of Changes
	12/31/14		Debit		Credit	12/31/15
Balance Sheet—Debits
Cash ............................	70,000					60,000
Accounts receivable ..................	180,000	f	10,000			190,000
Merchandise inventory ...............	200,000	g	30,000			230,000
Plant assets .......................	500,000	d	70,000			570,000
	950,000					1,050,000

Balance Sheet—Credits
Accumulated depreciation .............	100,000			c	50,000	150,000
Accounts payable ...................	170,000	h	10,000			160,000
Notes payable .....................	350,000			e	40,000	390,000
Capital stock ......................	200,000					200,000
Retained earnings ...................	130,000	b	10,000	a	30,000	150,000
	950,000					1,050,000

Statement of Cash Flows
Operating activities ..................
Net income ...................		a	30,000
Increase in accounts receivable ......				f	10,000
Increase in merchandise inventory ....				g	30,000
Decrease in accounts payable				h	10,000
Depreciation expense ............		c	50,000
Investing activities
Cash paid to purchase plant assets ....				d	70,000
Financing activities
Cash paid for dividends ...........				b	10,000
Cash received from note payable .....		e	40,000

			250,000		250,000

May 15, 2022

SOLUTION.PDF

177. Based on the information provided below for Krackle Corp., complete the following worksheet to be used to prepare the statement of cash flows using the indirect method. (a) Net income for the...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment