Based on the Information Provided Below,complete the Following Worksheet to Be

question 168

Essay

Based on the information provided below,complete the following worksheet to be used to prepare the statement of cash flows:
(a)Net income for the year was $30,000.
(b)Dividends of $10,000 were declared and paid.
(c)Stylish'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.
(f)Merchandise inventory increased $30,000.
(g)Accounts payable decreased $10,000,

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Definitions:

Periodic Inventory Systems

Periodic Inventory Systems is an inventory management method where inventory levels are updated and physical counts are conducted at specific intervals, typically at the end of an accounting period.

FIFO

An inventory valuation method (First In, First Out) where the oldest inventory items are recorded as sold first.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in inventory valuation and grading.

Lower-Of-Cost-Or-Market

An accounting principle that values inventory at the lower of its historical cost or market value, to comply with the conservatism principle.