Chapter 16, Problem 14E

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 16A.1 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.

1. a. Net income for the year was $100,000.
2. b. Dividends of $80,000 cash were declared and paid.
3. c. The only noncash expense was $70,000 of depreciation.
4. d. Purchased plant assets for $70,000 cash.
5. e. Notes payable of $20,000 were issued for $20,000 cash.
6. f. $70,000 increase in accounts receivable.
7. g. $20,000 decrease in inventory.
8. h. $10,000 decrease in accounts payable.