PROVIDED IMAGE FOR CLARITY

Statement of Cash Flows

The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

		Dec. 31, 20Y2		Dec. 31, 20Y1
Assets
Cash		$124		$39
Accounts receivable (net)		72		49
Inventories		45		27
Land		103		113
Equipment		58		43
Accumulated depreciation-equipment		(15)		(8)
	Total Assets	$387		$263
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$49		$39
Dividends payable		8		-
Common stock, $1 par		26		12
Excess of paid-in capital over par		66		31
Retained earnings		238		181
	Total liabilities and stockholders' equity	$387		$263

The following additional information is taken from the records:

Land was sold for $25.

Equipment was acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $83 credit to Retained Earnings for net income.

There was a $26 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from (used for) operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Hirayama Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2

Cash flows from (used for) operating activities:
Cash received from sale of common stock / Decrease in accounts receivable / Increase in inventories / Net income / Net loss	$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Decrease in accounts receivableDepreciationGain on sale of land / Increase in accounts receivableLoss on sale of land	- Select -
Cash dividendsDecrease in inventoriesGain on sale of land / Increase in accounts payableLoss on sale of land	- Select -
Changes in current operating assets and liabilities:
Decrease in accounts receivable / Decrease in inventoriesDepreciationIncrease in accounts receivable / Net income	- Select -
Decrease in accounts payableDecrease in accounts receivable / Decrease in inventoriesIncrease in inventoriesNet income	- Select -
Cash paid for dividendsDecrease in accounts payableDepreciationIncrease in accounts payable / Net income	- Select -
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Cash paid for dividends / Cash received from sale of land / Depreciation / Gain on sale of land / Increase in accounts receivable	$- Select -
Cash paid for purchase of equipment / Decrease in accounts receivable / Depreciation / Increase in accounts payable / Increase in inventories	- Select -
Net cash flow from investing activities
Cash flows from (used for) financing activities:
Cash received from issuing common stock / Cash received from sale of land / Decrease in accounts payableDepreciationNet income	$- Select -
Cash dividendsCash received from sale of land / Decrease in inventoriesGain on sale of land / Increase in accounts receivable	- Select -
Net cash flows from financing activities
DepreciationNet decrease in cashNet incomeNet increase in cashNet loss
Cash balance, January 1, 20Y2
Cash balance, December 31, 20Y2

b. Was Hirayama Industries Inc.s net cash flows from operations more or less than net income?

The following additional information is taken from the records: 1. Land was sold for $25. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. 5. There was a $83 credit to Retained Earnings for net income. 6. There was a $26 debit to Retained Earnings for cash dividends declared. negative adjustments