Following are comparative balance sheets for Hardiplank Siding, Inc.:

An analysis of the Retained Earnings account for the year reveals the following:

a. Equipment with a cost of \(\$ 30,000\) on which \(\$ 27,000\) of depreciation had been Required answer questions (L.O.5) accumulated was sold during the year at a loss of \(\$ 1,500\). Included in net income is a gain on the sale of land of \(\$ 9,000\).

b. The president of the company has set two goals for 2001: (1) increase cash by \(\$ 40,000\) and (2) increase cash dividends by \(\$ 35,000\). The company's activities in 2001 are expected to be quite similar to those of 2000 , and no new fixed assets will be acquired.
Prepare a schedule showing cash flows from operating activities under the indirect method for 2000. Can the company meet its president's goals for 2001? Explain.

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HARDIPLANK SIDING, INC. Comparative Balance Sheets December 31, 2000, and 1999 Assets Cash Accounts receivable, net Merchandise inventory. Land Buildings. Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Goodwill. Total assets 2000 1999 $ 80,000 $ 57,500 60,000 45,000 90,000 52,500 67,500 60,000 90,000 90,000 (30,000) (27,000) 285,000 225,000 (52,500) (48,000) 120,000 150,000 $710,000 $605,000 Liabilities and Stockholders' Equity Accounts payable $ 95,000 $ 65,000 Accrued liabilities payable Capital stock .. 30,000 315,000 22,500 300,000 Paid-in capital-stock dividends. 75,000 67,500 Paid-in capital-land donations 15,000 -0- Retained earnings... 180,000 150,000 Total liabilities and stockholders' equity $710,000 $605,000