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.

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

Statement of cash flowsindirect method

Instructions

Labels and Amount Descriptions

Statement of Cash Flows

X

Instructions

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.

X

Labels and Amount Descriptions

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

X

Statement of Cash Flows

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.

Harris Industries Inc.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net income to net cash flow from operating activities:
4
5
6	Changes in current operating assets and liabilities:
7
8
9
10
11
12
13
14	Cash flows from investing activities:
15
16
17
18	Cash flows from financing activities:
19
20
21
22
23	Cash at the beginning of the year
24	Cash at the end of the year
25	Schedule of Noncash Financing and Investing Activities:
26