The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dес. 31, 20Y1 Assets Cash $170 $53 Accounts receivable (net) 96 67 Inventories 60 36 Land 138 151 Equipment 77 58 Accumulated depreciation-equipment (21) (11) Total Assets $520 $354 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $66 $53 Dividends payable 10 Common stock, $1 par 34 17 Excess of paid-in capital over par 89 41 Retained earnings 321 243 Total liabilities and stockholders' equity $520 $354 The following additional information is taken from the records: 1. Land was sold for $33. 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 $112 credit to Retained Earnings for net income. 6. There was a $34 debit to Retained Earnings for cash dividends declared.

The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dес. 31, 20Y1 Assets Cash $170 $53 Accounts receivable (net) 96 67 Inventories 60 36 Land 138 151 Equipment 77 58 Accumulated depreciation-equipment (21) (11) Total Assets $520 $354 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $66 $53 Dividends payable 10 Common stock, $1 par 34 17 Excess of paid-in capital over par 89 41 Retained earnings 321 243 Total liabilities and stockholders' equity $520 $354 The following additional information is taken from the records: 1. Land was sold for $33. 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 $112 credit to Retained Earnings for net income. 6. There was a $34 debit to Retained Earnings for cash dividends declared.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: During Year 2, the ce

A: Assets are resources that are controlled which results from prior transactions that are expected to…

Q: Select the item that matches with the description. Descriptions Terms a. Begins with net income and…

A: a. Begins with net income and then lists adjustments to net income in order to arrive at operating…

Q: 1. The statement of cash flows classifies cash receipts and cash payments into two categories:…

A: Cash flow statement is a statement showing the inflow and outflow of cash in an organization. It is…

Q: The balance in the is used to check the accuracy on the ending balance of the statement of cash…

A: In financial reporting, the statement of cash flows plays a crucial role in illustrating how a…

Q: The statement of cash flows reports cash receipts (inflows) and cash payments (outflows) for a…

A: Cash Flow Statement: A cash flow statement is a kind of financial statement that offers aggregate…

Q: What is the Indirect Method used when preparing the Statement of Cash Flows and please give me a few…

A: Indirect method: Under indirect method the net income is adjusted with the increase or decrease of…

Q: Which of the following should be deducted from net income in computing net cash flows from operating…

A: Introduction: Statement of cash flows: All cash in and out transactions in an accounting period is…

Q: The direct method for the preparation of the statement of cash flows: Group of answer choices…

A: There are two methods of Preparing Operating Activities in Statement of Cash Flows. One is Direct…

Q: The net income reported on the income statement for the current year was $93,700. Depreciation…

A: The cash flow from the operating activity is a part of the cash flow statement and it can be…

Q: The cash flow on total assets ratio Is computed by dividing average total assets by operating in-…

A: Cash flow on total assets is an efficiency ratio that analyzes real cash flows to business assets…

Q: The net income reported on the income statement for the current year was $73,600. Depreciation…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: The accuracy of the statement of cash flows can be verified by computing the change in the balance…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Which of the following statements regarding the statement of cash flows is false?

A: A cash flow statement is an important tool used to manage finances by tracking the cash flow for an…

Q: Preparation of the statement of cash flows does not involve: Multiple Choice O O O O O Computing the…

A: Cash flow statement is prepared to compute the net change in cash from the prior period. Statement…

Q: Prepare a statement of cash flows using the indirect method.

A: An indirect method of cash flow is used by the company which is prepared from the net income and all…

Q: When a worksheet is used to prepare a Statement of Cash Flows, inflows of cash and items as…

A: The Statement of Cash Flows is a fiscal statement that summarizes the cash inrushes( bills) and…

Q: 2. The direct method of determining cash flows begins with net income and lists all adjustments to…

A: The objective of the question is to verify the accuracy of the statement about the direct method of…

Q: Which of the following items is deducted from net income to arrive at cash flow from operations when…

A: The item that is deducted from net income to arrive at cash flow from operations when using the…

Q: Which of the following is not a purpose of cash flows statement. Select one: O a. They predict net…

A: Cash flow statement is a part of financial statements which shows how did a company used the cash…

Q: The sum of the cash generated or used by each section of the statement of the cash flows should be…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Question

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.

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
$170
$53
Accounts receivable (net)
96
67
Inventories
60
36
Land
138
151
Equipment
77
58
Accumulated depreciation-equipment
(21)
(11)
Total Assets
$520
$354
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
$66
$53
Dividends payable
10
Common stock, $1 par
34
17
Excess of paid-in capital over par
89
41
Retained earnings
321
243
Total liabilities and stockholders' equity
$520
$354
The following additional information is taken from the records:
1. Land was sold for $33.
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 $112 credit to Retained Earnings for net income.
6. There was a $34 debit to Retained Earnings for cash dividends declared.

flows, cash payments, decreases in cash, or any negative adjustments.
Hirayama Industries Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from (used for) operating activities:
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Net cash flow from investing activities
Cash flows from (used for) financing activities:
Net cash flows from financing activities
Cash balance, January 1, 20Y2
Cash balance, December 31, 20Y2
%24

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Help
A reader of a statement of cash flows wishes to analyze the major classes of gross cash receipts and gross cash payments from operating activities. Which methods of reporting cash flows from operating activities will supply that information? Both the direct and indirect methods. Only the direct method. Only the indirect method. Neither method.
Cash Flows from (Used for) Operating Activities The net income reported on the income statement for the current year was $73,600. Depreciation recorded on store equipment for the year amounted to $27,400. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Accounts payable (merchandise creditors) Wages payable End of Year $23,500 56,000 35,500 4,750 21,800 4,900 Beginning of Year $18,700 48,000 40,000 7,000 16,800 5,800 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash
A measure that helps estimate the amount and timing of cash flows from operating activities is the cash flow on total assets ratio. True or False True False
When preparing a statement of cash flows, cash equivalents are subtracted from cash in order to calculate the net change in cash during a period. True False
Does the statement of cash flows report only transactions that cause an increase or a decrease in cash? Explain.
Help with part "a" please!
Select the item that matches with the description. Descriptions a. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows. b. Item included in net income, but excluded from net operating cash flows. c. Net cash flows from operating activities divided by average total assets. d. Cash transactions involving lenders and investors. e. Cash transactions involving net income. f. Cash transactions for the purchase and sale of long-term assets. g. Purchase of long-term assets by issuing stock to seller. h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes. Terms
abels and Amount Descriptions Instructions Labels Dec. 31, Dec. 31, December 31, 20Y3 20Y3 20Y2 For the Year Ended December 31, 20Y3 Amount Descriptions Assets 3 Cash $625,680.00 $586,230.00 Cash received from sale of investments 228,100.00 208,850.00 4 Accounts receivable (net) 5 Inventories Cash paid for purchase of land Cash paid for purchase of equipment Cash received from issuing common 640,910.00 617,650.00 0.00 240,620.00 6 Investments 7 Land 328,090.00 0,00 stock 704,540.00 553,320.00 8 Equipment 9 Accumulated depreciation-equipment Cash dividends (166,310.00) (147840.00) Decrease in accounts payable Decreașe in accounts receivable Decrease in accrued expenses payable 10 Total assets $2,361,010.00 $2,058,830.00 11 Liabilities and Stockholders' Equity $425,280.00 $404,550.00 52,020.00 12 Accounts payable Decrease in inventories 41,990.00 13 Accrued expenses payable Depreciation 24,190.00 20,170.00 14 Dividends payablie Gain on sale of investments 15 Common stock, $4 par…
Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for in activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)