The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $96 $32 Accounts receivable (net) 54 40 Inventories 34 22 Land 78 89 Equipment 44 35 Accumulated depreciation-equipment (12) (6) Total Assets $294 $212 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $37 $32 Dividends payable 6 - Common stock, $1 par 19 10 Excess of paid-in capital over par 43 25 Retained earnings 189 145 Total liabilities and stockholders' equity $294 $212

The following additional information is taken from the records:

1. Land was sold for $28.
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 $63 credit to Retained Earnings for net income.
6. There was a $19 debit to Retained Earnings for cash dividends declared.

Question Content Area

a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from (used for) operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Cash flows from (used for) operating activities:
Cash received from sale of common stockDecrease in accounts receivableIncrease in inventoriesNet incomeNet lossNet income	$Net income
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Decrease in accounts receivableDepreciationGain on sale of landIncrease in accounts receivableLoss on sale of landDepreciation	Depreciation
Cash dividendsDecrease in inventoriesGain on sale of landIncrease in accounts payableLoss on sale of landGain on sale of land	Gain on sale of land
Changes in current operating assets and liabilities:
Decrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivableNet incomeIncrease in accounts receivable	Increase in accounts receivable
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in inventoriesNet incomeIncrease in inventories	Increase in inventories
Cash paid for dividendsDecrease in accounts payableDepreciationIncrease in accounts payableNet incomeIncrease in accounts payable	Increase in accounts payable
Net cash flow from operating activities		$fill in the blank 1c5ce7f80026fef_13
Cash flows from (used for) investing activities:
Cash paid for dividendsCash received from sale of landDepreciationGain on sale of landIncrease in accounts receivableCash received from sale of land	$Cash received from sale of land
Cash paid for purchase of equipmentDecrease in accounts receivableDepreciationIncrease in accounts payableIncrease in inventoriesCash paid for purchase of equipment	Cash paid for purchase of equipment
Net cash flow from investing activities		fill in the blank 1c5ce7f80026fef_18
Cash flows from (used for) financing activities:
Cash received from issuing common stockCash received from sale of landDecrease in accounts payableDepreciationNet incomeCash received from issuing common stock	$Cash received from issuing common stock
Cash dividendsCash received from sale of landDecrease in inventoriesGain on sale of landIncrease in accounts receivableCash dividends	Cash dividends
Net cash flows from financing activities		fill in the blank 1c5ce7f80026fef_23
DepreciationNet decrease in cashNet incomeNet increase in cashNet lossNet increase in cash		$Net increase in cash
Cash balance, January 1, 20Y2		fill in the blank 1c5ce7f80026fef_26
Cash balance, December 31, 20Y2