Question

V2.cengagenow.com CengageNOWV2 Onli Ch 16 HW exercises egin eBook Calculator Show Me How Statement of Cash Flows The comparative balance sheet of Hirayama Industries Inc. for December 31, 2012 and 2071, is as follows: Dec. 31, 2012 Dec 31, 2011 Assets $101 $33 Cash 58 41 36 22 Accounts receivable (net) Inventories Land 82 92 46 36 Equipment (12) $311 $218 $39 $33 6 Accumulated depreciation equipment Total Assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity 21 10 50 26 195 149 $311 $218 The following additional information is taken from the records: 1. Land was sold for $25. 2. Equipment was acquired for cash 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. S. There was a $67 credit to Retained Earnings for net income. 6. There was a $21 debit to Retained Earnings for cash dividends declared. Check My Work All work saved.

Answer 1

Cash Flow Statement:
Cash flow form the operating Activities:	Amount $
Net Income	67
add: Depreciation	6
Less:Gain on sale of land	-15	(25-10)
Changes in working capital:
Increase in AR	-17	(58-41)
Increase in Inv.	-14	(36-22)
Increase in AP	6	(39-33)
Increase in Dividend pay.	6
Cash inflow from Operating activities	39
Cash flow from Investing activities:
Add:Sale of land	25
Less:Purchase of equip	-10
Cash inflow of investing activities	15
Cash flow from Financing activities:
Add: issue of shares	35
Less:Dividend paid	-21
Cash from financing activities	14
Total cash inflow from all activities	68
Add: Opening Cash	33
Closing Cash	101