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

question 65

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. 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 that 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.

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Definitions:

Sufficiency of Consideration

The legal principle that the value exchanged in a contract must be both legally sufficient and something of value, in order for the contract to be enforceable.

Full Settlement

An agreement or payment that completely resolves a claim, debt, or dispute, leaving no further obligations for any of the involved parties.

Additional Consideration

Extra compensation or benefit that is promised to be given in a contract, in addition to what was originally agreed.

Modified Agreement

A change or revision to the terms of an existing contract, which must be agreed upon by all parties involved.