Question

Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the year ended December 31, 2019. From the statement of cash flows for the year ended December 31, 2020, you determine the following: • Net income for the year ended December 31, 2020, was $98,500. • Dividends paid during the year ended December 31, 2020, were $66,500. • Accounts receivable decreased $11,000 during the year ended December 31, 2020. • The cost of new buildings acquired during 2020 was $126,000. • No buildings were disposed of during 2020. • The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2020, was $186,000. Required: a. Complete the December 31, 2020, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.) b. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. Complete this question by entering your answers in the tabs below. Required A Required B Complete the December 31, 2020, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.) HOEMAN INC. Comparative Balance Sheets At December 31, 2020 and 2019

Answer 1

Comparative Balance Sheet At December 31,2020 and 2019 2020 2019 Assets Current Assets: Cash $ 54,000 $ 46,000 Accounts Receivable $ 1,33,000 $ 1,44,000 144000-11000 Inventory $ 1,62,000 $ 1,90,000 Total Current Assets $ 3,49,000 $ 3,80,000 Land $ 1,46,500 $ 1,46,500 Buildings $ 4,00,000 $2,74,000 274000+126000 Less: Accumulated Depreciation $ -1,29,000 $-1,12,000 Total land & buildings $ 4,17,500 $ 3,08,500 Total Assets | $ 7,66,500 $ 6,88,500 Liabilities Current Liabilities: Accounts Payable $ 1,63,500 $ 1,93,000 326000-162500 Notes Payable $ 1,62,500 $ 1,28,500 Total Current Liabilities $ 3,26,000 $ 3,21,500 Long term debt $ 1,76,500 $ 1,40,000 Bal.Fig Stockholder's Equity: Common Stock $ 50,500 $ 45,500 Retained Earnings $ 2,13,500 $ 1,81,500 181500+98500-66500 Total Stockholder's Equity $ 2,64,000 $ 2.27,000 Total Liabilities & Stockholder's Equity $ 7,66,500 $ 6,88,500

lalalalta For the year ended December 31,2020 Cash from Operating Activities A Net Income $ 98,500 Add(Deduct) items not effecting Cash: Add: Depreciation Expenses $ 17,000 129000-112000 Decrease in Accounts Receivable $ 11,000 Decrease in Inventory $ 28,000 Decrease in Accounts Payable $ -29,500 Increase in Notes payable $ 34,000 Net Cash from Operating Activities $ 1,59,000 Cash from Investing activities B Purchase of building $-1,26,000 Cash from Financing Activities C Issunace of common stock $ 5,000 Increase in Long term Debt $ 36,500 Dividend paid in Cash $ -66,500 Net Cash from Financing activities $ -25,000 Net Cash from Activities(A+B+C) $ 8,000 Add: Opening Cash Balance $ 46,000 Closing Cash balance $ 54,000
Note: Land will change from Last year. Retained Earnings of 2020 213500 are Net income is added and Dividend is deducted from Retained Earnings.