The following financial statements and information are available for Hinch Industries Inc. Balance Sheets As of December 31 Year 3 Year 2 Assets A Yo 161,100 104, 100 187,200 288,200 662,700 (309,100) 80,900 1,175, 100, $ 121,200 85,700 172,700 220,700 491,100 (239,000) 119,400 971,800 $ Cash Accounts receivable Inventory Marketable securities (availab Equipment Accumulated depreciation Land Total assets Liabilities and equity Liabilities Accounts payable (inventory) Notes payable-Long-term Bonds payable Total liabilities Stockholders' equity Common stock, no par Preferred stock, Paid-in capital i stock Total paid-In capital Retained earning Less: Treasury stock Total stockholders' eq Total liabilities and stockholders? equity 37,300 230,000 202,000 469,300 $ 67,000 251,000 .101,000 419,000 O 240,900 111,200 35,400 D OLIC 387,500 357,200 (38,900) 705,800 $1,175, 100 201,000 91,200 31,400 323,600 298, 100 (68,900) 552,800 $ 971,800 $1,050,900 (767,200) 283,700 Income Statement For the Year Ended December 31, Year 3 Sales revenue Cost of goods sold Gross profit Operating expenses Supplies expense $21,400 Salaries expense 93,000 Depreciation expense 91,000 Total operating expenses Operating income Nonoperating items Interest expense Gain from the sale of marketable securities Gain from the sale of land and equipment Net income (205,400) 78,300 (15,400) 31,700 14,800 $ 109,400 WWWWW Additional Information RIWW 1. Sold land that cost $38.500 for $42,500. 2. Sold equipment that cost $29,100 and had accumulated depreciation of $20,900 for $19,000. 3. Purchased new equipment for $200700, 4. Sold marketable securities that were classified as available for sale and that cost $42,100 for $73,800. 5. Purchased new marketable securities, classified as available-for-sale, for $109.600. 6. Paid $21,000 on the principal of the long-term note. 7. Paid off a $101.000 bond issue and issued new bonds for S202,000. 8. Sold 100 shares of treasury stock at its cost. 9. Issued some new common stock 5. Purchased new marketable securities, classified as available for sale, for $109,600. 6. Paid $21,000 on the principal of the long-term note 7. Paid off a $101.000 bond issue and issued new bonds for $202000 8. Sold 100 shares of treasury stock at its cost 9. Issued some new common stock 10. Issued some new $50 par preferred stock 11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) points a. Prepare the statement of cash flows for Finch Industries using direct method. (Amounts to be deducted and cash outfia be indicated by a minus sign.) cBook Reference FINCH INDUSTRIES, INC. Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flows from operating activities: Cash Receipts from Sales Total cash inflow Cash payments for Inventory purchased Interest Operating expenses Total cash outflows Net cash inflow from operating activities 1 of 2 Paid to purchase marketable securities Paid to purchase equipment Proceeds from sale of marketable securities Proceeds from sale of equipment Proceeds from sale of land (109,600)| (200.700) 73,800 19.000 42,500 (175,000) Book Print rences Net cash outflow from investing activities Cash flows from financing activities: Repayment of loan Repayment of bonds Proceeds from sale of treasury stock Payment of dividends Proceeds from bonds issue Proceeds from common stock issue Proceeds from preferred stock issue (21,000)| (101,000) 30,000 (50,300)| 202,000 39,900 24,000 123,600 (51,400) Net cash inflow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance S (51,400)
