Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $240,000 of bonds, on which there was $2,400 of unamortized discount, for $250,000. b. Sold 12,000 shares of $30 par common stock for $69 per share. c. Sold equipment with a book value of $44,100 for $63,500. d. Purchased land for $406,000 cash. e. Purchased a building by paying $49,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $180,000 of bonds at 97. g. Purchased 6,800 shares of $45 par common stock as treasury stock at $86 per share. h. Paid dividends of $2.20 per share. There were 22,000 shares issued and 4,000 shares of treasury stock. Effect Amount a. $fill in the blank 2 b. $fill in the blank 4 c. $fill in the blank 6 d. $fill in the blank 8 e. $fill in the blank 10 f. $fill in the blank 12 g. $fill in the blank 14 h. $fill in the blank 16 Question 2 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 $178 $58 Accounts receivable (net) 101 73 Inventories 63 40 Land 144 164 Equipment 81 63 Accumulated depreciation-equipment (22) (11) Total Assets $545 $387 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $69 $58 Dividends payable 11 - Common stock, $1 par 36 18 Excess of paid-in capital over par 82 45 Retained earnings 347 266 Total liabilities and stockholders' equity $545 $387 The following additional information is taken from the records: Land was sold for $50. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $117 credit to Retained Earnings for net income. There was a $36 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 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Gain on sale of land Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Net cash flow from operating activities $fill in the blank abd44c005f83fe0_13 Cash flows from (used for) investing activities: $Cash received from sale of land Cash paid for purchase of equipment Net cash flow from investing activities fill in the blank abd44c005f83fe0_18 Cash flows from (used for) financing activities: $Cash received from issuing common stock Cash dividends Net cash flows from financing activities fill in the blank abd44c005f83fe0_23 $Net increase in cash Cash balance, January 1, 20Y2 fill in the blank abd44c005f83fe0_26 Cash balance, December 31, 20Y2 $fill in the blank abd44c005f83fe0_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? Feedback Area