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Need help with part b. Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the
Need help with part b.
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 $98,500. Dividends paid during the year ended December 31, 2020, were $67,000. Accounts receivable decreased $14,000 during the year ended December 31, 2020. The cost of new buildings acquired during 2020 was $134,000. 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 $189,000. Required: a. Complete the December 31, 2020, 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, 2020, using the indirect method. Required A Required B 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 $ 55,500 $ 48,500 Accounts receivable 120,000 134,000 Inventory 164,500 181,500 Total current assets $ 340,000 $ 364,000 Land 148,500 148,500 Buildings 407,500 273,500 Less: Accumulated depreciation (127,500) (111,000) Total land & buildings $ 428,500 $ 311,000 Total assets $ 768,500 $ 675,000 Liabilities: Current liabilities: Accounts payable $ 161,000 $ 191,000 Note payable 165,000 126,000 Total current liabilities $ 326,000 $ 317,000 Long-term debt $ 174,000 $ 126,000 Stockholders' Equity Common stock $ 51,500 $ 46,500 Retained earnings 217,000 185,500 Total stockholders' equity $ 268,500 $ 232,000 Total liabilities and stockholders' equity $ 768,500 $ 675,000 Required A Required B 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.) HOEMAN INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities: Net income 98,500 Add (deduct) items not affecting cash: Depreciation expense Decrease in accounts payable Decrease in inventory Increase in note payable Decrease in accounts receivable $ $ 98,500 Net cash provided by operating activities Cash flows from investing activities: Cash paid to acquire new buildings Net cash used for investing activities Cash flows from financing activities: Cash received from issuance of common stock Cash received from issuance of long-term debt Payment of cash dividends on common stock $ 0 $ 98,500 Net cash used by financing activities Net increase in cash for the year Cash balance, January 1, 2020 Cash balance, December 31, 2020 98,500Step by Step Solution
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