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 $184 $58 Accounts receivable (net) 105 72 Inventories 66 40 Land 150 164 Equipment 84 63 Accumulated depreciation-equipment (23) (12) Total Assets $566 $385 Liabilities and Stockholder's Equity Accounts payable (merchandise creditors) $71 $58 Dividends payabe 11 - Common stock, $1 par 37 18 Excess of paid-in capital over par 98 45 Retained earnings 349 264 Total liabilities and stockholders' equity $566 $385 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 $122 credit to Retained Earnings for net income. There was a $37 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. Hirayama Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from (used for) operating activities: Net income $ Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation $ Gain on sale of land $ Changes in current operating assets and liabilities: Increase in accounts receivable $ Increase in inventories $ Increase in accounts payable $ Net cash flow from operating activities $ Cash flows from (used for) investing activities: Cash received from sale of land $ Cash paid for purchase of equipment $ Net cash flow from investing activities $ Cash flows from (used for) financing activities: Cash received from issuing common stock $ Cash dividends $ Net cash flows from financing activities $ Net increase in cash $ Cash balance, January 1, 20Y2 $ Cash balance, December 31, 20Y2 $ b. Was Hirayama Industries Inc.’s net cash flows from operations more or less than net income?

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 $184 $58 Accounts receivable (net) 105 72 Inventories 66 40 Land 150 164 Equipment 84 63 Accumulated depreciation-equipment (23) (12) Total Assets $566 $385 Liabilities and Stockholder's Equity Accounts payable (merchandise creditors) $71 $58 Dividends payabe 11 - Common stock, $1 par 37 18 Excess of paid-in capital over par 98 45 Retained earnings 349 264 Total liabilities and stockholders' equity $566 $385 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 $122 credit to Retained Earnings for net income. There was a $37 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. Hirayama Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from (used for) operating activities: Net income $ Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation $ Gain on sale of land $ Changes in current operating assets and liabilities: Increase in accounts receivable $ Increase in inventories $ Increase in accounts payable $ Net cash flow from operating activities $ Cash flows from (used for) investing activities: Cash received from sale of land $ Cash paid for purchase of equipment $ Net cash flow from investing activities $ Cash flows from (used for) financing activities: Cash received from issuing common stock $ Cash dividends $ Net cash flows from financing activities $ Net increase in cash $ Cash balance, January 1, 20Y2 $ Cash balance, December 31, 20Y2 $ b. Was Hirayama Industries Inc.’s net cash flows from operations more or less than net income?

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

Question

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	$184	$58
Accounts receivable (net)	105	72
Inventories	66	40

Land	150	164
Equipment	84	63
Accumulated depreciation-equipment	(23)	(12)
Total Assets	$566	$385
Liabilities and Stockholder's Equity
Accounts payable (merchandise creditors)	$71	$58
Dividends payabe	11	-
Common stock, $1 par	37	18

Excess of paid-in capital over par	98	45
Retained earnings	349	264
Total liabilities and stockholders' equity	$566	$385

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 $122 credit to Retained Earnings for net income.
There was a $37 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.

Hirayama Industries Inc.

Statement of Cash Flows

For the Year Ended December 31, 20Y2

Cash flows from (used for) operating activities:
Net income	$
Adjustments to reconcile net income to net cash flows from (used for) operating activities:

Depreciation	$
Gain on sale of land	$
Changes in current operating assets and liabilities:

Increase in accounts receivable	$
Increase in inventories	$
Increase in accounts payable	$

Net cash flow from operating activities		$
Cash flows from (used for) investing activities:

Cash received from sale of land	$
Cash paid for purchase of equipment	$
Net cash flow from investing activities		$

Cash flows from (used for) financing activities:
Cash received from issuing common stock	$
Cash dividends	$

Net cash flows from financing activities		$
Net increase in cash		$

Cash balance, January 1, 20Y2		$
Cash balance, December 31, 20Y2		$

b. Was Hirayama Industries Inc.’s net cash flows from operations more or less than net income?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 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.