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 12A.1; report operating activities 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. Scoreteck's only noncash expense was $70,000 of depreciation.
d. The company purchased plant assets for $70,000 cash.
e. Notes payable of $20,000 were issued for $20,000 cash.
f. Change in accounts receivable.
g. Change in inventory.
h. Change in accounts payable.

Transcribed Image Text:

SCORETECK CORPORATION Spreadsheet for Statement of Cash Flows-Indirect Method For Year Ended December 31, 2015 Analysis of Changes Credit Dec. 31,2014 Dec. 31, 2015 6Balance Sheet-Debit Bal. Accounts 12 Balance Sheet-Credit Bal. Accounts 1,050,000 $1,150,000 19 Statement of Cash Flows Increase in accounts receivable Decrease in accounts payable Cash paid to purchase plant assets Financing activities Cash from issuance of notes