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Statement of Cash FlowsIndirect Method The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows: Dec. 31, 20Y4
Statement of Cash FlowsIndirect Method
The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows:
Dec. 31, 20Y4 | Dec. 31, 20Y3 | ||||
Assets | |||||
Cash | $443,240 | $360,920 | |||
Accounts receivable (net) | 665,280 | 592,200 | |||
Inventories | 887,880 | 1,022,560 | |||
Prepaid expenses | 31,640 | 25,200 | |||
Land | 302,400 | 302,400 | |||
Buildings | 1,713,600 | 1,134,000 | |||
Accumulated depreciationbuildings | (466,200) | (414,540) | |||
Machinery and equipment | 781,200 | 781,200 | |||
Accumulated depreciationmachinery and equipment | (214,200) | (191,520) | |||
Patents | 106,960 | 112,000 | |||
Total assets | $4,251,800 | $3,724,420 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $837,480 | $927,080 | |||
Dividends payable | 32,760 | 25,200 | |||
Salaries payable | 78,960 | 87,080 | |||
Mortgage note payable, due in nine years | 224,000 | 0 | |||
Bonds payable | 0 | 390,000 | |||
Common stock, $5 par | 200,400 | 50,400 | |||
Paid-in capital in excess of parcommon stock | 366,000 | 126,000 | |||
Retained earnings | 2,512,200 | 2,118,660 | |||
Total liabilities and stockholders' equity | $4,251,800 | $3,724,420 |
An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4:
- Net income, $524,580.
- Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680.
- Patent amortization reported on the income statement, $5,040.
- A building was constructed for $579,600.
- A mortgage note for $224,000 was issued for cash.
- 30,000 shares of common stock were issued at $13 in exchange for the bonds payable.
- Cash dividends declared, $131,040.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Harris Industries Inc. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 20Y4 | ||
Cash flows from (used for) operating activities: | ||
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Changes in current operating assets and liabilities: | ||
Net cash flow from operating activities | ||
Cash flows from (used for) investing activities: | ||
Net cash flow used for investing activities | ||
Cash flows from (used for) financing activities: | ||
Net cash flow from financing activities | ||
Cash balance, January 1, 20Y4 | ||
Cash balance, December 31, 20Y4 | ||
Schedule of Noncash Investing and Financing Activities: | ||
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