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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started