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		$142		$46
Accounts receivable (net)		80		58
Inventories		50		32
Land		115		131
Equipment		65		51
Accumulated depreciation-equipment		(17)		(9)
	Total Assets	$435		$309
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$55		$46
Dividends payable		9		-
Common stock, $1 par		29		15
Excess of paid-in capital over par		65		36
Retained earnings		277		212
	Total liabilities and stockholders' equity	$435		$309

The following additional information is taken from the records:

1. Land was sold for $40.
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 $94 credit to Retained Earnings for net income.
6. There was a $29 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 loss	$- Select -
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 land	- Select -
Cash dividendsDecrease in inventoriesGain on sale of landIncrease in accounts payableLoss on sale of land	- Select -
Changes in current operating assets and liabilities:
Decrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivableNet income	- Select -
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in inventoriesNet income	- Select -
Cash paid for dividendsDecrease in accounts payableDepreciationIncrease in accounts payableNet income	- Select -
Net cash flow from operating activities		$fill in the blank f84d6afb9ff6056_13
Cash flows from (used for) investing activities:
Cash paid for dividendsCash received from sale of landDepreciationGain on sale of landIncrease in accounts receivable	$- Select -
Cash paid for purchase of equipmentDecrease in accounts receivableDepreciationIncrease in accounts payableIncrease in inventories	- Select -
Net cash flow from investing activities		fill in the blank f84d6afb9ff6056_18
Cash flows from (used for) financing activities:
Cash received from issuing common stockCash received from sale of landDecrease in accounts payableDepreciationNet income	$- Select -
Cash dividendsCash received from sale of landDecrease in inventoriesGain on sale of landIncrease in accounts receivable	- Select -
Net cash flows from financing activities		fill in the blank f84d6afb9ff6056_23
DepreciationNet decrease in cashNet incomeNet increase in cashNet loss		$- Select -
Cash balance, January 1, 20Y2		fill in the blank f84d6afb9ff6056_26
Cash balance, December 31, 20Y2		$fill in the blank f84d6afb9ff6056_27

Question Content Area

b. Was Hirayama Industries Inc.s net cash flows from operations more or less than net income?

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