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 $115 $38 Accounts receivable (net) 66 47 Inventories 41 26 Land 94 107 Equipment 53 41 Accumulated depreciation-equipment (14) (7) Total Assets $355 $252 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors)$45 $38 Dividends payable 7 - Common stock, $1 par 23 12 Excess of paid-in capital over par 54 29 Retained earnings 226 173 Total liabilities and stockholders' equity $355 $252 The following additional information is taken from the records: Land was sold for $33. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $76 credit to Retained Earnings for net income. There was a $23 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.
The comparative
Dec. 31, 20Y2 Dec. 31, 20Y1
Assets
Cash $115 $38
Accounts receivable (net) 66 47
Inventories 41 26
Land 94 107
Equipment 53 41
Accumulated
Total Assets $355 $252
Liabilities and
Accounts payable (merchandise creditors)$45 $38
Dividends payable 7 -
Common stock, $1 par 23 12
Excess of paid-in capital over par 54 29
Total liabilities and stockholders' equity $355 $252
The following additional information is taken from the records:
Land was sold for $33.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $76 credit to Retained Earnings for net income.
There was a $23 debit to Retained Earnings for cash dividends declared.
a. Prepare a statement of
Profit on sale of land:
Cost of land(107-94) = 13
Sale price = 33
Profit = 33 - 13 = 20
Dividend:
Cash dividend declared = 23
Dividend payable = 6
Dividend paid = 23 - 6 = 17
Equipment purchase:
53 - 41 = 12
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