Statement of Cash Flows-Indirect Method The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows: Dec. 31, Dec. 31, 20Y4 20Y3 Assets Cash Accounts receivable (net) Inventories Prepaid expenses Land Buildings Accumulated depreciation-buildings Machinery and equipment Accumulated depreciation-machinery and equipment Patents $443,240 $360,920 592,200 887,880 1,022,560 25,200 302,400 1,713,600 1,134,000 (466,200) (414,540) 781,200 (214,200) (191,520) 112,000 $4,251,800 $3,724,420 665,280 31,640 302,400 781,200 106,960 Total assets Liabilities and Stockholders' Equity Accounts payable Dividends payable Salaries payable Mortgage note payable, due in 10 years Bonds payable Common stock, $5 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $837,480 $927,080 25,200 87,080 32,760 78,960 224,000 390,000 50,400 126,000 2,512,200 2,118,660 $4,251,800 $3,724,420 200,400 366,000 Total liabilities and stockholders' equity An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4: a. Net income, $524,580 b. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680 c. Patent amortization reported on the income statement, $5,040 d. A building was constructed for $579,600 e. A mortgage note for $224,000 was issued for cash f. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable g. Cash dividends declared, $131,040 Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, 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 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 at the beginning of the year Cash at the end of the year Schedule of Non cash Financing and investing Activities