Instructions The comparative balance sheet of Hirayama Industries Inc. for December 31, 2012 and 20Y1, is as follows: Dec 31, 2012 Dec 31, 2011 Assets Cash 5488.00 5163.00 283.00 203.00 Accounts receivable (net) Inventories 171.00 11000 455.00 396.00 225.00 Equipment 17100 Instructions Accumulated depreciation equipment (56.00) $1,507.00 126.00) $1.076.00 Total assets 50 $175.00 $164.00 26.00 Llabilities and Stockholders Equity 11 Accounts payable (merchandise creditors) 11 Dividends payable Common stock, 51 par 14 Excess of pald-in capital over par Retained earnings Total liabilities and stockholders' equity 98.00 47.00 25400 122.00 956.00 743.00 $1,50700 $1,076.00 Instructions The following additional information is taken from the records: 1. Land was sold for $122. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year, 4. The common stock was issued tor cash. 5. There was a 5313 credit to Retained Earnings for net income. 6. There was a $100 dobit to Retained Earnings for cash dividends declared. Required: a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from used for operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text Required: a. Prepare a statement of cash flows, using the Indirect method of prosenting cash Nows from used for operating activities. Be sure to complete the heading of the statomont. Refer to the Labels and Amount Descriptions Mist provided for the exact wording of the answer choices for text entries. Use the minus sign to indicato cash outflows, decreases in cash and a net cash outflow for each section. It required b. Was Hirayama Industries Inc. net cash flows from operations more or less than net income? What is the source of this diference? Labels and Amount Descriptions th Labels December 31, 20Y2 For the Year Ended December 31, 20Y2 Amount Descriptions Amortization of intangible assets #8 Cash received from sale of land 28 Cash paid for purchase of equipment 171 Cash received from issuing common stock $96.0 Cash dividends 225.0 Decrease in accounts payable Decrease in accounts receivable X Thl Labels and Amount Descriptions Decrease in inventories Depreciation Gain on sale of land Increase in accounts payable JOY Increase in accounts receivable Increase in inventories #88.0 Loss on sale of land 283.00 Net increase in cash 171.00 Net decrease in cash $96.00 Net cash flows from operating activities 225,00 Net cash flows used for operating activities Net cash flows from investing activities 2 Net cash flows used for investing activities Net cash flows from financing activities Net cash flows used for financing activities Net income Net loss
