Question
Following is a partially completed balance sheet for Hoeman, Inc., at December 31, 2014, together with comparative data for the year ended December 31, 2013.
Following is a partially completed balance sheet for Hoeman, Inc., at December 31, 2014, together with comparative data for the year ended December 31, 2013. From the statement of cash flows for the year ended December 31, 2014, you determine the following:
?Net income for the year ended December 31, 2014, was $95,000.
?Dividends paid during the year ended December 31, 2014, were $66,500.
?Accounts receivable decreased $14,000 during the year ended December 31, 2014.
?The cost of new buildings acquired during 2014 was $128,500.
?No buildings were disposed of during 2014.
?
The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2014, was $181,500.
Required:
a.
Complete the December 31, 2014, 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, 2014, using the indirect method. Many firms treat increases/decreases in notes payable (or short-term debt) as financing activities rather than operating activities. For this reason, "Increases in notes payable" has been listed as the first Financing Activity. (Amounts to be deducted should be indicated by a minus sign.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started