Based on the Information Provided Below for Krackle Corp

question 122

Essay

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.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year from the balance sheet date or within the entity's normal operating cycle if longer.

Restructuring Charges

Costs associated with reorganizing a company's structures and operations, often involving layoffs, facility closures, or other significant changes.

Condensed Income Statement

A simplified version of an income statement that shows the main components of net income and revenue in brief.

U.S.GAAP

Generally Accepted Accounting Principles in the United States, a collection of financial reporting standards utilized in the U.S. for accounting purposes.