The comparative balance sheet of Hirayama Industries Inc. for December $31,20$Y$2$ and $20$Y$1,$ is as follows:

$1$ Dec. $31,20$Y$2$ Dec. $31,20$Y$1$

$2$ Assets

$3$ Cash $$486\mathrm{.}00$ $$158\mathrm{.}00$

$4$ Accounts receivable $($net$)280\mathrm{.}00195\mathrm{.}00$

$5$ Inventories $172\mathrm{.}00110\mathrm{.}00$

$6$ Land $400\mathrm{.}00453\mathrm{.}00$

$7$ Equipment $223\mathrm{.}00172\mathrm{.}00$

$8$ Accumulated depreciation$-$equipment $(60\mathrm{.}00)(27\mathrm{.}00)$

$9$ Total assets $$1,501\mathrm{.}00$ $$1,061\mathrm{.}00$

$10$ Liabilities and Stockholders$$ Equity

$11$ Accounts payable $($merchandise creditors$)$ $$180\mathrm{.}00$ $$161\mathrm{.}00$

$12$ Dividends payable $32\mathrm{.}00$

$13$ Common stock, $$1$ par $105\mathrm{.}0045\mathrm{.}00$

$14$ Excess of paid$-$in capital over par $247\mathrm{.}00121\mathrm{.}00$

$15$ Retained earnings $937\mathrm{.}00734\mathrm{.}00$

$16$ Total liabilities and stockholders$$ equity $$1,501\mathrm{.}00$ $$1,061\mathrm{.}00$

The following additional information is taken from the records:

$1.$ Land was sold for $$120.$

$2.$ 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 $$299$ credit to Retained Earnings for net income.

$6.$ There was a $$96$ 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 $31,20$Y$2$

For the Year Ended December $31,20$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:

$7$

$8$

$9$

$10$

$11$ Cash flows from $($used for$)$ investing activities:

$12$

$13$

$14$

$15$ Cash flows from $($used for$)$ financing activities:

$16$

$17$

$18$

$19$

$20$ Cash balance, January $1,20$Y$2$

$21$ Cash balance, December $31,20$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