Based on the Information Provided Below, Complete the Following Worksheet

question 81

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:

Factory Floor

The operational area within a manufacturing plant where goods are actually produced, typically housing machinery, assembly lines, and workers.

Warehouse

A facility for storing goods, merchandise, and materials before they are distributed for sale or use.

Quality Costs

Expenses related to ensuring products or services meet company and customer quality standards, including prevention, appraisal, and failure costs.

Appraisal Costs

Costs that are incurred to identify defective products before the products are shipped to customers.