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 $66,000.
• Accounts receivable decreased $12,500 during the year ended December 31, 2020.
• The cost of new buildings acquired during 2020 was $129,000.
• 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 $191,000.

Required:

1. Complete the December 31, 2020, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.)
2. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.

Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Complete the December 31, 2020, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.)

HOEMAN INC.
Comparative Balance Sheets
At December 31, 2020 and 2019
	2020	2019
Assets:
Current assets:
Cash	$56,000	$48,500
Accounts receivable	126,500	139,000
Inventory	157,000	176,500
Total current assets	$339,500	$364,000
Land	143,500	143,500
Buildings	400,500	271,500
Less: Accumulated depreciation	(120,500)	(105,500)
Total land & buildings	$423,500	$309,500
Total assets	$763,000	$673,500
Liabilities:
Current liabilities:
Accounts payable	$169,000	$189,500
Note payable	157,500	127,000
Total current liabilities	$326,500	$316,500
Long-term debt	$171,000	$127,000
Stockholders' Equity:
Common stock	$52,000	$47,000
Retained earnings	213,500	183,000
Total stockholders' equity	$265,500	$230,000
Total liabilities and stockholders' equity	$763,000	$673,500

HOEMAN INC.
Statement of Cash Flows
For the Year Ended December 31, 2020
Cash flows from operating activities:
Net income	$96,500
Add (deduct) items not affecting cash:
Depreciation expense
Decrease in accounts receivable
Decrease in inventory
Increase in note payable
Decrease in accounts payable
Net cash provided by operating activities		$96,500
Cash flows from investing activities:
Cash paid to acquire new buildings
Net cash used for investing activities		$0
Cash flows from financing activities:
Cash received from issuance of long-term debt
Cash received from issuance of common stock
Payment of cash dividends on common stock
Net cash used by financing activities		$0
Net increase in cash for the year		$96,500
Cash balance, January 1, 2020
Cash balance, December 31, 2020		$96,500