eBookShow Me How Question Content Area Statement of Cash Flows The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $143 $45 Accounts receivable (net) 81 56 Inventories 51 31 Land 117 127 Equipment 66 49 Accumulated depreciation-equipment (18) (9) Total Assets $440 $299 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $55 $45 Dividends payable 9 - Common stock, $1 par 29 14 Excess of paid-in capital over par 76 35 Retained earnings 271 205 Total liabilities and stockholders' equity $440 $299 The following additional information is taken from the records: Land was sold for $25. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $95 credit to Retained Earnings for net income. There was a $29 debit to Retained Earnings for cash dividends declared. Question Content Area a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from (used for) operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Hirayama Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from (used for) operating activities: Net income $Net income 95 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Depreciation 9 Gain on sale of land Gain on sale of land -15 Changes in current operating assets and liabilities: Increase in accounts receivable Increase in accounts receivable -25 Increase in inventories Increase in inventories -20 Increase in accounts payable Increase in accounts payable 10 Net cash flow from operating activities $fill in the blank 07057bf8affff7f_13 54 Cash flows from (used for) investing activities: Cash received from sale of land $Cash received from sale of land 25 Cash paid for purchase of equipment Cash paid for purchase of equipment -17 Net cash flow from investing activities fill in the blank 07057bf8affff7f_18 8 Cash flows from (used for) financing activities: Cash received from issuing common stock $Cash received from issuing common stock Cash dividends Cash dividends Net cash flows from financing activities fill in the blank 07057bf8affff7f_23 Net increase in cash $Net increase in cash Cash balance, January 1, 20Y2 fill in the blank 07057bf8affff7f_26 Cash balance, December 31, 20Y2 $fill in the blank 07057bf8affff7f_27 Feedback Area Feedback Calculate the increases and decreases in the current asset/liability accounts over the period. What affect do these increases/decreases have on cash? What items might have had an affect on net income but have no cash impact? What items are considered noncurrent assets? Question Content Area b. Was Hirayama Industries Inc.s net cash flows from operations more or less than net income? Less