The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: 1 Dec. 31, 20Y2 Dec. 31, 20Y1 2 Assets 3 Cash $488.00 $163.00 4 Accounts receivable (net) 283.00 203.00 5 Inventories 171.00 110.00 6 Land 396.00 455.00 7 Equipment 225.00 171.00 8 Accumulated depreciation-equipment (56.00) (26.00) 9 Total assets $1,507.00 $1,076.00 10 Liabilities and Stockholders Equity 11 Accounts payable (merchandise creditors) $173.00 $164.00 12 Dividends payable 26.00 13 Common stock, $1 par 98.00 47.00 14 Excess of paid-in capital over par 254.00 122.00 15 Retained earnings 956.00 743.00 16 Total liabilities and stockholders equity $1,507.00 $1,076.00 The following additional information is taken from the records: 1. Land was sold for $122. 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 $313 credit to Retained Earnings for net income. 6. There was a $100 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?

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:
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3	Adjustments to reconcile net income to net cash flows from (used for) operating activities:
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6	Changes in current operating assets and liabilities:
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11	Cash flows from (used for) investing activities:
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15	Cash flows from (used for) financing activities:
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20	Cash balance, January 1, 20Y2
21	Cash balance, December 31, 20Y2