Statement of Cash Flows 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 $164 $52 Accounts receivable (net) 93 65 Inventories 58 36 Land 133 147 Equipment 75 57 Accumulated depreciation-equipment (20) (10) Total Assets $503 $347 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $63 $52 Dividends payable 10 - Common stock, $1 par 33 16 Excess of paid-in capital over par 84 41 Retained earnings 313 238 Total liabilities and stockholders' equity $503 $347 The following additional information is taken from the records: Land was sold for $35. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $108 credit to Retained Earnings for net income. There was a $33 debit to Retained Earnings for cash dividends declared. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Statement of Cash Flows

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	$164		$52
Accounts receivable (net)	93		65
Inventories	58		36
Land	133		147
Equipment	75		57
Accumulated depreciation-equipment	(20)		(10)
	Total Assets	$503		$347
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$63		$52
Dividends payable	10		-
Common stock, $1 par	33		16
Excess of paid-in capital over par	84		41
Retained earnings	313		238
	Total liabilities and stockholders' equity	$503		$347

The following additional information is taken from the records:

Land was sold for $35.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $108 credit to Retained Earnings for net income.
There was a $33 debit to Retained Earnings for cash dividends declared.

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.

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