Homework Chapter 13 eBook Show Me How Calculator Statement of Cash Flows-Indirect Method The comparative balance sheet of Harris Industries Inc. at December 31, 2014 and 2043, is as follows: Dec. 31, 2014 Dec. 31, 20Y3 Assets Cash Accounts receivable (net) Inventories $360,920 592,200 1,022,560 25,200 302,400 1,134,000 Prepaid expenses Land $443,240 665,280 887,880 31,640 302,400 1,713,600 (466,200) 781,200 (214,200) 106,960 $4,251,800 Buildings Accumulated depreciation--buildings Machinery and equipment (414,540) 781,200 Accumulated depreciation-machinery and equipment Patents (191,520) 112,000 $3,724,420 Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $837 48 4977 080 Homework Chapter 13 eBook Show Me How Calculator Liabilities and Stockholders' Equity. Accounts payable (merchandise creditors) Dividends payable $927,080 25,200 87,080 Salaries payable Mortgage note payable, due in nine years Bonds payable $837,480 32,760 78,960 224,000 0 200,400 366,000 2,512,200 $4,251,800 Common stock, $5 par Paid-in capital in excess of par-common stock Retained earnings 390,000 50,400 126,000 2,118,660 $3,724,420 Total liabilities and stockholders' equity An examination of the income statement and the accounting records revealed the following additional information applicable to 2014: a. Net income, $524,580. b. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680. d. A building was constructed for $579,600. e. A mortgage note for $224,000 was issued for cash. f. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable. g. Cash dividends declared, $131,040. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out adjustments. Check My Work Assignment Score: 64.52% Changes in current operating assets and liabilities: Increase in accounts receivable -73,080 Decrease in inventories 134,680 Increase in prepaid expenses -6,440 Decrease in accounts payable -89,600 Net cash flow from operating activities Cash flows from (used for) investing activities: Cash paid for construction of building Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from issuance of mortgage note $ 224,000 Cash paid for dividends Net cash flow from financing activities Net Increase in cash Cash balance, January 1, 2014 Cash balance, December 31, 2014 Schedule of Noncash Investing and Financing Activities: Issuance of common stock to retire bonds Check My Work