Question

PR 13-2B Statement of cash flows-indirect method Obj. 2, 3, 4,5 The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3,is as follows: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash Accounts receivable (net) 443,240 360.920 92,200 1,022,560 25,200 302,400 1,134,000 (414,540) 781,200 (191,520) 112.000 $3,724420 887,880 Prepaid expenses Land Buildings 31,640 1,713,600 781,200 Machinery and equipment Accumulated depreciation-machinery and equipment.. (214,200) Liabilities and Stockholders'Equity Accounts payable (merchandise creditors). 837,480 $927,080 25,200 87,080 Salaries payable 78,960 224,000 Mortgage note payable, due in nine years.. Bonds payable Common stock, $5 par. Paid-in capital: Excess of issue price over par-common stock.... 126,000 Retained earnings Total liabilities and stockholders' equity An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4: A Net income, $524,580. B. Depreciation expense reported on the income statement: buildings, $51,660, machinery and equipment, $22,680 C. Patent amortization reported on the income statement, $5,040. D. A building was constructed for $579,600. E A mortgage note for $224,000 was issued for cash. F. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable. G. Cash dividends declared, $131,040. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Answer 1