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 $37,000$

$154,00087,000$