Question
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.
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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