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The comparative balance sheet of Hirayama Industries Inc. for December 3 1 , 2 0 Y 2 and 2 0 Y 1 , is as

The comparative balance sheet of Hirayama Industries Inc. for December
3
1
,
2
0
Y
2
and
2
0
Y
1
,
is as follows:
1
Dec.
3
1
,
2
0
Y
2
Dec.
3
1
,
2
0
Y
1
2
Assets
3
Cash $
4
8
6
.
0
0
$
1
5
8
.
0
0
4
Accounts receivable
(
net
)
2
8
0
.
0
0
1
9
5
.
0
0
5
Inventories
1
7
2
.
0
0
1
1
0
.
0
0
6
Land
4
0
0
.
0
0
4
5
3
.
0
0
7
Equipment
2
2
3
.
0
0
1
7
2
.
0
0
8
Accumulated depreciation
-
equipment
(
6
0
.
0
0
)
(
2
7
.
0
0
)
9
Total assets $
1
,
5
0
1
.
0
0
$
1
,
0
6
1
.
0
0
1
0
Liabilities and Stockholders
Equity
1
1
Accounts payable
(
merchandise creditors
)
$
1
8
0
.
0
0
$
1
6
1
.
0
0
1
2
Dividends payable
3
2
.
0
0
1
3
Common stock, $
1
par
1
0
5
.
0
0
4
5
.
0
0
1
4
Excess of paid
-
in capital over par
2
4
7
.
0
0
1
2
1
.
0
0
1
5
Retained earnings
9
3
7
.
0
0
7
3
4
.
0
0
1
6
Total liabilities and stockholders
equity $
1
,
5
0
1
.
0
0
$
1
,
0
6
1
.
0
0
The following additional information is taken from the records:
1
.
Land was sold for $
1
2
0
.
2
.
Equipment was acquired for cash.
3
.
There were no disposals of equipment during the year.
4
.
The common stock was issued for cash.
5
.
There was a $
2
9
9
credit to Retained Earnings for net income.
6
.
There was a $
9
6
debit to Retained Earnings for cash dividends declared.
Required:
a
.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from
(
used for
)
operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.
b
.
Was Hirayama Industries Inc.
s net cash flows from operations more or less than net income? What is the source of this difference?
Labels
December
3
1
,
2
0
Y
2
For the Year Ended December
3
1
,
2
0
Y
2
Amount Descriptions
Amortization of intangible assets
Cash received from sale of land
Cash paid for purchase of equipment
Cash received from issuing common stock
Cash dividends
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventories
Depreciation
Gain on sale of land
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Loss on sale of land
Net increase in cash
Net decrease in cash
Net cash flows from operating activities
Net cash flows used for operating activities
Net cash flows from investing activities
Net cash flows used for investing activities
Net cash flows from financing activities
Net cash flows used for financing activities
Net income
Net loss
a
.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.
Hirayama Industries Inc.
Statement of Cash Flows
1
Cash flows from
(
used for
)
operating activities:
2
3
Adjustments to reconcile net income to net cash flows from
(
used for
)
operating activities:
4
5
6
Changes in current operating assets and liabilities:
7
8
9
1
0
1
1
Cash flows from
(
used for
)
investing activities:
1
2
1
3
1
4
1
5
Cash flows from
(
used for
)
financing activities:
1
6
1
7
1
8
1
9
2
0
Cash balance, January
1
,
2
0
Y
2
2
1
Cash balance, December
3
1
,
2
0
Y
2
b
.
Was Hirayama Industries Inc.
s net cash flows from operations more or less than net income? What is the source of this difference?
Net cash flow from operations was than net income.
The source
(
s
)
of the difference are: Check all that apply.
Gain on the sale of land
Sale of common stock
Changes in current operating assets and liabilities
Dividends paid
Purchase of equipment
Depreciation expense

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