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:
Cash Equivalents
Investments of a short-term nature that are both easily converted into precise cash amounts and carry a minimal risk of fluctuating in value.
IFRS
Stands for International Financial Reporting Standards, which are designed to make company accounts understandable and comparable across international boundaries.
Highly Liquid Investments
Investments that can easily and quickly be converted into cash with little loss of value.
Petty Cash Fund
A modest sum of money held in reserve for small or unplanned expenses.
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