Statement of Cash Flows-Indirect Method The comparative balance sheet of Harris Industries Inc. at December 31, 2014 and 2043, is as follows: Dec. 31, 2014 Dec. 31, 2043 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 1,713,600 1,134,000 Buildings Accumulated depreciation-buildings Machinery and equipment (466,200) (414,540) 781,200 Accumulated depreciation-machinery and equipment 781,200 (191,520) (214,200) 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 Show Me How Print Item Bonus payable 390,00 Common stock, $5 par 200,400 50,400 Paid-in capital in excess of par-common stock 366,000 126,000 Retained earings 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 2014: 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. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate or any negative adjustments. Harris Industries Inc. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from (used for) operating activities Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Patent amortization Changes in current operating assets and liabilities: Increase in accounts receivable L Hell Changes in current operating assets and liabilities: Increase in accounts receivable Decrease in inventories Y Increase in prepaid expenses Decrease in accounts payable Decrease in salaries payable V U Net cash flow from operating activities Cash flows from (used for) investing activities: Cash paid for construction of building Y Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from issuance of mortgage note $ Net cash flow from financing activities Cash received from issuance of mortgage note Cash balance, January 1, 2014 Cash balance, December 31, 2014 Schedule of Noncash Investing and Financing Activities: Depreciation X Feedback