Net income for the year anded December 31, 2014, was $98,000. Dividends paid during the year ended December 31, 2014, were $63,000. Accounts receivable decreased $13,500 during the year ended December 31, 2014 The cost of new buildings acquired during 2014 was $134,500. No buildings were disposed of during 2014 The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2014, was $194,500. Required: a. Complete the December 31, 2014, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.) 2013 HOEMAN, INC. Comparative Balance Sheets At December 31, 2014 and 2013 2014 Assets: Current assets: Cash $ 52,500 Accounts receivable Inventory 174,000 Total current assets $ Land 48,000 144,000 184,000 376,000 149,500 285,000 (107,000) 327,500 703,500 (125,000) R $ $ Buildings Less: Accumulated depreciation Total land & buildings Total assets Liabilities: Current liabilities: Accounts payable Note payable Total current liabilities Long-term debt Stockholders' Equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 158,500 329,500 192,500 126,500 319,000 153,000 T 50,500 48,500 183,000 231,500 703,500 $ b. Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method. Many firms treat increases/decreases in notes payable (or short-term debt) as financing activities rather than operating activities. For this reason, "Increases in notes payable has been listed as the first Financing Activity. (Amounts to be deducted should be indicated by a minus sign.) HOEMAN, INC. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities: Add (deduct) items not affecting cash: Cash flows from investing activities: Cash flows from financing activities: Increase in notes payable Cash balance, January 1, 2014 Cash balance, December 31, 2014