Question

Statement of Cash Flows-Indirect Method The comparative balance sheet of Harris Industries Inc. at December 31, 2014 and 2043, is as follows: Dec. 31, Dec. 31, 2014 2013 Assets Cash Accounts receivable (net) Inventories Prepaid expenses $443,240 665,280 887,880 $360,920 592,200 1,022,560 31,640 25,200 Land 302,400 302,400 Buildings 1,713,600 (466,200) 1,134,000 (414,540) Accumulated depreciation-buildings Machinery and equipment Accumulated depreciation-machinery and equipment 781,200 (214,200) 106,960 $4,251,800 781,200 (191,520) 112,000 $3,724,420 Patents Total assets $837,480 32,760 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Salaries payable Mortgage note payable, due in nine years Bonds payable Common stock, $5 par $927,080 25,200 87,080 78,960 224,000 390,000 50,400 126,000 2,118,660 200,400 366,000 2,512,200 Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $4,251,800 $3,724,420 An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4:

Answer 1

$ 524,580 $ $ 74,340 5,040 Harris Industries Inc. Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash flows from operating activities: Depreciation Patent amortization Changes in Current operating assets and liabilities Increase in Accounts Receivables Decrease in Inventory Increase in Prepaid Expenses Decrease in accounts Payable Decrease in salaries payable Net Csah flow from operating activities Cash flows from (Used for) investing activities: Cash paid for construction of building Net Csah flow used for investing activities Cash Flows from (Used for) Financing Activities Cash received from issuance of mortagage note Cash paid for dividends $ $ S $ S (73,080) 134,680 (6.440) (89.600) (8.120 S S 561,400 561.400 S (579.600) S (579.600) $ S 224.000 (123,480)

Net cash flow from financing activities Net Increase in Cash Cash balance, January 1, 20Y4 Cash balance, December 31, 20Y4 Schedule of Noncash Investing and Finanacing Activities: Issuanc of Common stock to retire bonds $ S S $ 100,520 82,320 360.920 443.240 S 390,000 Working Notes: Cash paid for Dividends Opening balance of Dividends payable Add: dividends declared $ $ $ $ S 25,200 131,040 156,240 32,760 123.480 Less: Closing balance of Dividends payable Cash paid for Dividends