Question

please complete the full question on the same format if possible, and please do it as soon as possible

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 $97.000 • Dividends paid during the year ended December 31, 2020. were $65.500 • Accounts receivable decreased $11,000 during the year ended December 31, 2020 • The cost of new buildings acquired during 2020 was $130.500 • 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 $181.000 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 Required B Complete the December 31, 2020, balance sheet Hint: Long-term debt is the last number to compute to make the balance

Answer 1

Answer -

a. Answer -

HOEMAN INC.
Comparative Balance Sheets
At December 31, 2020 and 2019
	2020	2019
Assets :
Current assets :
Cash	$53500	$48000
Accounts receivable	$129000	$140000
Inventory	$160000	$184000
Total current assets	$342500	$372000
Land	$146000	$146000
Buildings	$403000	$272500
Less : Accumulated depreciation	$(125500)	$(106500)
Total land & buildings	$423500	$312000
Total assets	$766000	$684000
Liabilities :
Current liabilities :
Accounts payable	$165500	$194500
Notes payable	$164500	$127000
Total current liabilities	$330000	$321500
Long term debt	$175500	$137500
Stockholder's Equity :
Common stock	$50500	$46500
Retained earnings	$210000	$178500
Total stockholder's equity	$260500	$225000
Total liabilities and stockholder's equity	$766000	$684000

Calculations :

Accounts receivable decreased by $11000

= $140000 - $11000

= $129000

Buildings = $272500 + $130500 (newly purchased)

Buildings = $403000

Accounts payable = Total current liabilities - Notes payable

Accounts payable = $330000 - $164500

Accounts payable = $165500

Retained earning for year 2020 = (Net Income - Dividend paid) + Previous years retained earnings

Retained earning for year 2020 = ($97000 - $65500) + $178500

Retained earning for year 2020 = $210000

Long term debt = Total assets - (Total current liabilities + Total Stockholder's equity)

Here,

Total assets = Total liabilities and stockholder's equity

So,

Long term debt = $766000 - ($330000 + $260500)

Long term debt = $175500

b. Answer -

HOEMAN INC.
Statement of Cash Flows
For the Year Ended December 31, 2020
Cash flows from operating activities :
Net income		$97000
Add (deduct) items not affecting cash :
Depreciation expense	$19000
Decrease in accounts receivable	$11000
Decrease in inventory	$24000
Increase in notes payable	$37500
Decrease in accounts payable	$(29000)
Net cash provided by operating activities (A)		$159500
Cash flows from investing activities :
Proceeds from sale of investments	$0
Purchase of building	$(130500)
Net cash used by investing activities (B)		$(130500)
Cash flows from financing activities :
Proceeds from long term debt	$38000
Proceeds from issuance of common stock	$4000
Payment of cash dividends on common stock	$(65500)
Net cash used by financing activities (C)		$(23500)
Total Cash flows increase (decrease) (A+B+C)		$5500
Cash balance, January 1, 2020		$48000
Cash balance, December 31, 2020		$53500