Question

etod of presenting cash llows Irom PR 13-2B Statement of cash flows-indirect method ash flow ing activities, as follows: Obj. 2, 3, 4,5 from The comparative balance sheet of Harris Industries Inc, at December 31, 20Y4 and 20Y5, 1 cash flow $561,400 Assets Dec. 31, 20Y4 Dec. 31, 20Y3 Cash TEMPLATE Accounts receivable (net) $443,240 $360,920 592,200 1,022,560 Inventories 665,280 Prepaid expenses Land 887,880 25,200 302,400 1,134,000 (414,540) 781,200 31,640 302,400 Buildings 1,713,600 466,200) 781,200 (214,200) Accumulated depreciation-machinery and equipment.... Patents (191,520) 112,000 106,960 $4,251,800 $3,724,420 Total assets . . (Continue

Answer 1

Statement of Cash Flows - Indirect Method
	Amount in $	Amount in $
Net income		$          5,24,580
Cash flows from operating activities
Adjustments for:
Depreciation (51,660 + 22,680)	$             74,340
Patent	$                5,040
Increase in Account receivables	$            -73,080
Decrease In Inventory	$          1,34,680
Decrease in Account Payable	$            -89,600
Increase in Dividend Payable	$                7,560
Prepaid Expenses Increases	$              -6,440
Salaries Payable	$              -8,120
		$             44,380
Net cash from operating activities		$          5,68,960
Cash flows from investing activities
Construction of Building	$        -5,79,600
Net cash used in investing activities		$        -5,79,600
Cash flows from Financing activities
Dividend Paid	$        -1,31,040
Issue of Mortgage note	$          2,24,000
Net cash used in financing activities		$             92,960
Net increase in cash and cash equivalents		$             82,320
Add :Cash and cash equivalents at beginning of period		$          3,60,920
Cash and cash equivalents at end of period		$          4,43,240