Based on the Information Provided Below, Complete the Following Worksheet

question 74

Essay

Based on the information provided below, complete the following worksheet to be used to prepare the statement of cash flows for the Gulp-it-Down Coffee Co.
$\begin{array}{c}\text {Gulp-it-Down Coffee Co.}\\\text {Worksheet for a Statement of Cash Flows}\\\text {For the Year Ended December 31,20}\\\begin{array}{|l|c|c|c|c|}\hline \text { Balance sheet effects: } & \text { Beginning } & \text { Debit } & \text { Credit } & \text { Ending } \\\hline \text { Assets } & \text { Balance } & \text { Changes } & \text { Changes } & \text { Balance } \\\hline \text { Cash and cash equivalents } & 160,000 & & \text { (x) } & 140,000 \\\hline \text { Accounts receivable } & 380,000 & \text { (4) } & & 400,000 \\\hline \text { Inventory } & 420,000 & \text { (5) } & & 480,000 \\\hline \begin{array}{l}\text { Plant \& equipment (net of accumulated } \\\text { depreciation }\end{array} & 820,000 & \text { (8) } & \text { (3) } & 860,000 \\\hline \text { Totals } & 1,780,000 & & & 1,880,000 \\\hline\\\hline \text { Liabilities \& Owner's Equity } & & & & \\\hline \text { Accounts payable } & 260,000 & (6) & & 240,000 \\\hline \text { Accrued expenses payable } & 100,000 & & (7) & 120,000 \\\hline \text { Notes payable } & 720,000 & & (9) & 780,000 \\\hline \text { Capital stock } & 420,000 & & & 420,000 \\\hline \text { Retained earnings } & \underline{280,000} & (2) & (1) & \underline{320,000} \\\hline \text { Totals } & \underline{\underline{1.780,000}} & \underline{260,000} & \underline{260,000} & \underline{\underline{1.880,000}} \\\hline\end{array}\end{array}$
Additional Information:
(1.) Net income for the year amounted to $60,000, and cash dividends were declared and paid in the amount of $20,000.
(2.) Gulp-it-Down Coffee Co.'s only noncash expense was depreciation which totaled $100,000.
(3.) The company purchased plant assets for $140,000.
(4.) Notes payable in the amount of $60,000 were issued during the year.
$\begin{array}{|l|l|l|}\hline \text { Cash effects: } & & \\\hline \text { Operating activities: } & \\\hline \text { Net income } & (1)& \\ \hline \text { Depreciation expense } & (3) & \\\hline \text { Increase in accounts receivable } & &(4) \\\hline \text { Increase in inventory } & & (5) \\\hline \text { Decrease in accounts payable } & & (6)\\\hline \text { Increase in accrued expenses payable } & (7) & \\\hline\\\hline \text { Investing activities: } & \\\hline \text { Cash paid to acquire plant assets } && \text { (8) } \\\hline\\\hline \text { Financing activities: } & & \\\hline \text { Dividends paid } & &(2) \\\hline \begin{array}{l}\text { Proceeds from issuance of notes } \\\text { payable }\end{array} & (9) & \\\hline \text { Subtotals } &240,000 &260,000 \\\hline\\\hline \text { Net decrease in cash and cash equivalents } & (\mathrm{x}) & \\\hline \text { Totals } & 260,000 & 260,000 \\\hline\end{array}$

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Definitions:

Effective Compensation

A compensation strategy that successfully attracts, motivates, and retains employees, aligning with the organization's goals, and market standards.

Reward And Compensation Strategy

A deliberate approach a company takes to outline how employees are compensated and rewarded for their performance, aiming to align employee interests with organizational goals.

Optimal Compensation System

A well-designed compensation framework that aims to align the interests of the employees with those of the organization, while motivating staff and controlling costs.

Organization's Value

The core principles, beliefs, and philosophies that guide a company's operations and define its brand identity.