Instructions The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 2041, is as follows: 1 Dec 31, 2012 Dec 31, 20Y1 2 Assets 3 Cash $488.00 $160.00 4 Accounts receivable (net) 278.00 201.00 5 Inventories 177.00 109.00 6 Land 400.00 448.00 225.00 172.00 (58.00) (29.00) 9 $1.510.00 $1,061.00 10 $176.00 $160.00 7 Equipment 8 Accumulated depreciation equipment Total assets Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) 12 Dividends payable 13 Common stock, $1 par 14 Excess of paid-in capital over par 15 Retained earings Total Liabilities and stockholders' equity 28.00 103.00 55.00 246.00 123.00 957.00 723.00 16 $1,510.00 $1,061.00 Statement of Cash Flows Shaded cells have feedback. For the Year Ended December 31, 20Y2 2 $339.00 3 4 29.00 5 (74.00) 6 7 (77.00) 8 (68.00) 9 16.00 1 Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Gain on sale of land Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Net cash flows from operating activities 11 Cash flows from (used for) investing activities: Cash paid for purchase of equipment Cash received from sale of land Net cash flows from investing activities 15 Cash flows from (used for) financing activities: 16 Cash received from issuing common stock 17 Cash dividends Net cash flows from financing activities 10 $165.00 12 13 122.00 14 287.00 $62.00 (99.00) 18 (51.00) 19 $328.00 20 Cash balance, January 1, 20Y2 160.00 21 Cash balance, December 31, 20Y2 $488.00 Final Question Shaded cells have feedback. b. Was Hirayama Industries Inc.'s net cash flows from operations more or less than net income? What is the source of this difference? Net cash flow from operations was less than net income Points 1/1 The source(s) of the difference are: Check all that apply. U Dividends paid U Gain on the sale of land Depreciation expense Purchase of equipment U Sale of common stock Changes in current operating assets and liabilities Points 011