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Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the year ended December 31, 2019.
Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the year ended December 31, 2019. From the statement of cash flows for the year ended December 31, 2020, you determine the following: . Net income for the year ended December 31, 2020, was $96,500. Dividends paid during the year ended December 31, 2020, were $64,500. Accounts receivable decreased $11,000 during the year ended December 31, 2020. The cost of new buildings acquired during 2020 was $132,000. No buildings were disposed of during 2020. The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2020, was $186,500. Required: a. Complete the December 31, 2020, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.) b. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. Comparative Balance Sheets At December 31, 2020 and 2019 2020 2019 Assets: Current assets: Cash Accounts receivable Inventory Total current assets Land 57,000 $ 47,000 145,000 156,000 192,500 $ 384,500 146,500 274,500 (128,000) (110,000) $ 311,000 $ 695,500 Buildings Less: Accumulated depreciation Total land & buildings Total assets Liabilities: Current liabilities: Accounts payable Note payable $ 192,000 155,500 126,000 328,000 $ 318,000 $ 153,000 Total current liabilities $ Long-term debt Stockholders' Equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 53,500 $ 48,000 176,500 $ 224,500 $ 695,500 Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities: Add (deduct) items not affecting cash: Cash flows from investing activities: Cash flows from financing activities: Cash balance, January 1, 2020 Cash balance, December 31, 2020
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