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X P13-32A (similar to) Prepare statement of cash flows using the indirect method. The income statement for 2017 and the balance sheets for 2017 and 2016 are presented for Hoover Industries, Inc. Click the icon to view the income statement.) (Click the icon to view the balance sheets.) (Click the icon to view additional information.) Requirement Prepare a statement of cash flows for Hoover Industries, Inc., for the year ended December 31, 2017, using the indirect method. Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and for net cash outflows.) Hoover Industries, Inc. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2017 Operating Activities: Net income $ 157,290 Adjustments to reconcile net income to cash basis: Depreciation expense Gain on sale of plant asset Decrease in accounts receivable 50,200 (2,500) 50,000 (114,000) (6,500) 27,000 Increase in inventory Increase in prepaid insurance Increase in accounts payable X P13-32A (similar to) Prepare statement of cash flows using the indirect method. The income statement for 2017 and the balance sheets for 2017 and 2016 are presented for Hoover Industries, Inc. (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) (Click the icon to view additional information.) Requirement Prepare a statement of cash flows for Hoover Industries, Inc., for the year ended December 31, 2017, using the indirect method. Increase in prepaid insurance (6,500) Increase in accounts payable 27,000 Decrease in wages payable (1,200) Increase in interest payable 1,200 Increase in taxes payable 47,410 Increase in other accrued expenses payable 3,700 55,310 Net cash provided by used for) operating activities 212,600 Investing Activities: Proceeds on sale of plant asset 4,100 Purchase of equipment (45,800) Purchase of new investments (20,000) Net cash provided by (used for) investing activities (61,700) Financing Activities: This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers. X P13-32A (similar to) Prepare statement of cash flows using the indirect method. The income statement for 2017 and the balance sheets for 2017 and 2016 are presented for Hoover Industries, Inc. Click the icon to view the income statement.) (Click the icon to view the balance sheets.) (Click the icon to view additional information.) Requirement Prepare a statement of cash flows for Hoover Industries, Inc., for the year ended December 31, 2017, using the indirect method. Investing Activities: Proceeds on sale of plant asset Purchase of equipment 4,100 (45,800) (20,000) Purchase of new investments (61,700) Net cash provided by (used for) investing activities Financing Activities: Dividends paid Repayment of long-term debt (1.900) (8,000) 51,000 Proceeds from bond issuance Net cash provided by (used for) financing activities Net increase (decrease) in cash Cash, beginning of the year 41,100 192,000 285,000 477,000 Cash, end of the year $ Henderson Industries, Inc. Income Statement For the Year Ended December 31, 2017 Sales revenues $ 952,000 379,000 $ 573,000 Less: Cost of goods sold Gross profit Less operating expenses: Salaries and wages expense Insurance expense Depreciation expense $ 188,000 14,000 52,600 90,000 Other operating expenses 344,600 Total operating expenses Operating income Plus other income and less other expenses: $ 228,400 Interest expense 5,100 Other operating expenses 344,600 Total operating expenses Operating income Plus other income and less other expenses: $ 228,400 Interest expense 5,100 2,500 Gain on sale of PP&E Total other income and expenses 2,600 Income before income taxes $ 225,800 67,740 Less: Income tax expense $ 158,060 Net income Additional information follows: a. Sold plant asset for $4,100. The original cost of this plant asset was $10,200 and it had $8,600 of accumulated depreciation associated with it. b. Paid $6,000 on the bonds payable; issued $46,000 of new bonds payable. c. Declared and paid cash dividends of $36,400. d. Purchased new investment for $13,000. Paid cash. e. Purchased new equipment for $15,200. Paid cash. Henderson Industries, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current assets: Cash $ Accounts receivable 477,000 $ 72,000 333,000 6,500 293,000 122,000 214,000 4,000 Inventory Prepaid insurance Total current assets $ 888,500 $ 633,000 $ Property, plant, and equipment Less: Accumulated depreciation 590,000 $ (156,000) 91,000 585,000 (112,000) 78,000 Investments $ 1,413,500 $ 1,184,000 Total assets Investments 91,000 1,413,500 $ 78,000 1,184,000 $ Total assets Liabilities Current liabilities: Accounts payable (inventory purchases) Wages payable Interest payable Income taxes payable 57,000 $ 16,500 1,400 58,740 6,600 39,000 17,300 300 12,000 3,800 Other accrued expenses payable Total current liablities $ 140,240 $ 72,400 63,000 23,000 Long-term liabilities Total liabilities $ 203,240 $ 95,400 63,000 Long-term liabilities 23,000 95,400 Total liabilities $ 203,240 $ Stockholders' equity Common stock $ Retained earnings 604,000 $ 606,260 1,210,260 $ 604,000 484,600 1,088,600 $ Total stockholders' equity $ 1,413,500 $ 1,184,000 Total liabilities and equity