Statement of Cash Flows The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 2041, is as follows: Dec. 31, 2012 Dec. 31, 2011 Assets Cash $116 $37 Accounts receivable (net) 67 46 Inventories 42 25 Land 95 104 54 40 (14) (7) $360 $245 $45 $37 Equipment Accumulated depreciation equipment Total Assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity 7 24 12 64 29 220 167 $360 $245 The following additional information is taken from the records: 1. Land was sold for $23. 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 $77 credit to Retained Earnings for net income. 6. There was a $24 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, 2012 Cash flows from (used for) operating activities: Net income 77 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 O Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of land Cash flows from (used for) investing activities: Cash received from sale of land Cash paid for purchase of equipment O 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 decrease in cash 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? Less