Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A37: Statement of Cash Flows Please help solve with expressing formulas when necessary. Instructions The comparative balance sheet of Hirayama Industries Inc. for December 31,

A37: Statement of Cash Flows

Please help solve with expressing formulas when necessary.

image text in transcribedimage text in transcribedimage text in transcribed

Instructions The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec 31, 20Y2 Dec 31, 2011 Assets 3 Cash $234.00 $18.00 4 Accounts receivable (net) 70.00 63.00 5 Inventories 150.00 127.00 6 Land 320.00 422.00 7 Equipment 262.00 224.00 & Accumulated depreciation equipment (87.00) (54.00) 9 Total assets $949.00 $800.00 10 Liabilities and Stockholders' Equity $65.00 $47.00 11 Accounts payable (merchandise creditors) 12 Dividends payable 6.00 13 Common stock, $1 par 160.00 102.00 14 Excess of paid-in capital over par 109.00 90.00 15 Retained earnings 609.00 561.00 16 Total liabilities and stockholders'equity $949.00 $800.00 The following additional information is taken from the records: 1. Land was sold for $153. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. 5. There was a $79 credit to Retained Earnings for net income. 6. There was a $31 debit to Retained Earnings for cash dividends declared. Required: a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required. b. Was Hirayama Industries Inc.'s net cash flows from operations more or less than net income? What is the source of this difference? Labels and Amount Descriptions Labels December 31, 20Y2 For the Year Ended December 31, 20Y2 Amount Descriptions Amortization of intangible assets Cash received from sale of land Cash paid for purchase of equipment Cash received from issuing common stock Cash dividends Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Depreciation Gain on sale of land Increase in accounts payable Increase in accounts receivable Increase in inventories Loss on sale of land Net increase in cash Net decrease in cash Net cash flows from operating activities Net cash flows used for operating activities Net cash flows from investing activities Net cash flows used for investing activities Net cash flows from financing activities Net cash flows used for financing activities Net income Net loss Hirayama Industries Inc. Score: 110/149 Statement of Cash Flows For the Year Ended December 31, 20Y2 i Cash flows from (used for) operating activities: 2 Net income $79.00 3 Adjustments to reconcile net income to net cash flows from (used for) operating activities: 4 Depreciation 33.00 5 Gain on sale of land 255.00 6 Changes in current operating assets and liabilities: 7 Increase in accounts receivable (7.00) (23.00) 8 Increase in inventories 9 Increase in accounts payable (18.00) 10 Net cash flows used for operating activities $(12.00) 11 Cash flows from (used for) investing activities: 12 Cash received from sale of land $102.00 13 Cash paid for purchase of equipment (38.00) 14 82.00 Net cash flows used for investing activities 15 Cash flows from (used for) financing activities: 16 Cash received from issuing common stock $77.00 17 Cash dividends (25.00) 18 Net cash flows from financing activities 52.00 19 Net increase in cash $142.00 20 Cash balance, January 1, 20Y2 18.00 21 Cash balance, December 31, 20Y2 $160.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Principles Of Auditing

Authors: Hugo Romero

1st Edition

1632409372, 978-1632409379

More Books

Students also viewed these Accounting questions