Statement of Cash Flows The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 2041, is as follows: Dec. 31, 20Y2 Dec 31, 20Y1 Assets Cash $234 $18 70 63 Accounts receivable (net) Inventories 150 127 Land 320 422 6 8 Equipment 262 224 Accumulated depreciation-equipment (87) (54) Total assets $949 $800 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $65 $47 Dividends payable Common stock, $1 par 160 102 Excess of paid-in capital over par 109 Retained earnings 609 561 Total liabilities and stockholders' equity $949 $800 The following additional information is taken from the records: 1. Land was sold for $153. 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 $79 credit to Retained Earnings for net income. 6. There was a $31 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 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: 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 flow from operating activities Cash flows from (used for) investing activities Cash received from sale of land Cash paid for purchase of equipment Net cash flow from investing activities Cash flows from (used for) financing activities: Cash received from issuing common stock Cash dividends Net cash flows from financing activities Net increase in cash Cash balance, January 1, 2012 O I 10 DO DI Cash balance, December 31, 2012 Feedback b. Was Hirayama Industries Inc.'s net cash flows from operations more or less than net income? Less Feedback Feedback