Based on the information provided below for Krackle Corp complete the following

Question

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 FlowsIndirect Method For Year Ended December 31, 2015
		Analysis of Changes
	12/31/14	Debit	Credit	12/31/15
Balance SheetDebits
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 SheetCredits
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 FlowsIndirect Method For Year Ended December 31, 2015
			Analysis of Changes
	12/31/14		Debit		Credit	12/31/15
Balance SheetDebits
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 SheetCredits
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

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