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, Dec. 31, 2014 2013 Assets Cash Accounts receivable (net) Inventories Prepaid expenses $443,240 665,280 887,880 $360,920 592,200 1,022,560 31,640 25,200 Land 302,400 302,400 Buildings 1,713,600 (466,200) 1,134,000 (414,540) Accumulated depreciation-buildings Machinery and equipment Accumulated depreciation-machinery and equipment 781,200 (214,200) 106,960 $4,251,800 781,200 (191,520) 112,000 $3,724,420 Patents Total assets $837,480 32,760 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Salaries payable Mortgage note payable, due in nine years Bonds payable Common stock, $5 par $927,080 25,200 87,080 78,960 224,000 390,000 50,400 126,000 2,118,660 200,400 366,000 2,512,200 Paid-in capital in excess of par-common stock Retained earnings 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: 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 cash outflows, cash payments, decreases in cash, or any negative adjustments. Harris Industries Inc. Statement of Cash Flows For the Year Ended December 31, 2044 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 O DI DIO Decrease in inventories Increase in prepaid expenses Decrease in accounts payable Decrease in salaries payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash paid for construction of building Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from issuance of mortgage note O DE Cash paid for dividends 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 Decrease in inventories Increase in prepaid expenses 10000 Decrease in accounts payable Decrease in salaries payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash paid for construction of building Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from issuance of mortgage note 00 Cash paid for dividends Net cash flow from financing activities Net increase in cash Cash balance, January 1, 2014 Cash balance, December 31, 2074 Schedule of Noncash Investing and Financing Activities: Issuance of common stock to retire bonds