| 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 is not required.) (Enter all amounts as positive values.) |
| Additional Information |
| a. Net income for the year was $117,000. | | | | 117,000 |
| b. Dividends of $114,000 cash were declared and paid. | | | | 114,000 |
| c. The only noncash expense was $87,000 of depreciation. | | | | 87,000 |
| d. Purchased plant assets for $87,000 cash. | | | | 87,000 |
| e. Notes payable of $37,000 were issued for $37,000 cash. | | | | 37,000 |
| f. $87,000 increase in accounts receivable. | | | | 87,000 |
| g. $37,000 decrease in inventory. | | | | 37,000 |
| h. $27,000 decrease in accounts payable. | | | | 27,000 |
| BLUE RIDGE CORPORATION |
| Spreadsheet for Statement of Cash Flows—Indirect Method |
| For Year Ended December 31 |
| | 1-Jan | Analysis of Changes | | 3-Dec |
| | | Debit | Credit |
| Balance Sheet—Debit Bal. Accounts |
| Cash | $131,000 | | | $94,000 |
| Accounts receivable | 137,000 |
| Inventory | 284,000 |
| Plant assets | 617,000 |
| Totals | $1,169,000 |
| Balance Sheet—Credit Bal. Accounts |
| Accumulated depreciation | $117,000 |
| Accounts payable | 184,000 |
| Notes payable | 387,000 |
| Common stock | 217,000 |
| Retained earnings | 264,000 |
| Totals | $1,169,000 |
| Statement of Cash Flows |
| Operating activities |
| Net income | | 117,000 |
| Increase in accounts receivable | | | 0 |
| Decrease in inventory | | 0 |
| Decrease in accounts payable | | | 0 |
| Depreciation expense | | 0 |
| Investing activities |
| Cash paid to purchase plant assets | | | 87,000 |
| Financing activities |
| Cash paid for dividends | | | 0 |
| Cash from issuance of notes payable | | 37,000 |
| | | 154,000 | 87,000 |
brandon282011
AC216Unit6Assignment4-CashFlowIndirect.xlsx
