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.
Definitions:
Quantum Meruit
(“as much as is deserved”) a reasonable price paid for requested services.
Equitable Remedies
Judicial remedies requiring a party to act or refrain from acting in a certain way, often used when monetary compensation is insufficient.
Specific Performance
A legal remedy where a court orders a party to fulfill their obligations under a contract, rather than just paying damages.
Market Value
The current price at which an asset or service can be bought or sold in a marketplace.
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