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The comparative balance sheet of Harris Industries Inc. at December 31, 2016 and 2015, is as follows: 1 Dec. 31, 2016 Dec. 31, 2015 2

The comparative balance sheet of Harris Industries Inc. at December 31, 2016 and 2015, is as follows:

1

Dec. 31, 2016

Dec. 31, 2015

2

Assets

3

Cash

$443,240.00

$360,920.00

4

Accounts receivable (net)

665,280.00

592,200.00

5

Inventories

887,880.00

1,022,560.00

6

Prepaid expenses

31,640.00

25,200.00

7

Land

302,400.00

302,400.00

8

Buildings

1,713,600.00

1,134,000.00

9

Accumulated depreciation-buildings

(466,200.00)

(414,540.00)

10

Machinery and equipment

781,200.00

781,200.00

11

Accumulated depreciation-machinery and equipment

(214,200.00)

(191,520.00)

12

Patents

106,960.00

112,000.00

13

Total assets

$4,251,800.00

$3,724,420.00

14

Liabilities and Stockholders Equity

15

Accounts payable (merchandise creditors)

$837,480.00

$927,080.00

16

Dividends payable

32,760.00

25,200.00

17

Salaries payable

78,960.00

87,080.00

18

Mortgage note payable, due 2017

224,000.00

0.00

19

Bonds payable

0.00

390,000.00

20

Common stock, $5 par

200,400.00

50,400.00

21

Paid-in capital: Excess of issue price over parcommon stock

366,000.00

126,000.00

22

Retained earnings

2,512,200.00

2,118,660.00

23

Total liabilities and stockholders equity

$4,251,800.00

$3,724,420.00

An examination of the income statement and the accounting records revealed the following additional information applicable to 2016:

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 of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section and enter in the order listed on the Instructions page.

Labels/ Amount Description List:

Labels and Amount Descriptions
Cash paid for construction of building
Cash paid for dividends
Cash paid for merchandise
Cash paid to purchase treasury stock
Cash paid to retire bonds payable
Cash received from customers
Cash received from issuance of bonds payable
Cash received from issuance of common stock
Cash received from issuance of mortgage note
December 31, 2016
Decrease in accounts payable
Decrease in accounts receivable
Decrease in cash
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
For the Year Ended December 31, 2016
Gain on sale of investments
Issuance of common stock to retire bonds
Increase in accounts payable
Increase in accounts receivable
Increase in cash
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Loss on sale of investments
Net cash flow from financing activities
Net cash flow from investing activities
Net cash flow from operating activities
Net cash flow used for financing activities
Net cash flow used for investing activities
Net cash flow used for operating activities
Net income
Net loss
Patent amortization

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section and enter in the order listed on the Instructions page.

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Please refer to the list for titles for each section.

Score: 8/174 Harris Industries Inc. Statement of Cash Flows For the Year Ended December 31, 2016 1Cash flows from operating activities: 2Net income 3Adjustments to reconcile net income to net cash flow from operating activities

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