Question

Statement of Cash Flows The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $184 $58 Accounts receivable (net) 105 72 Inventories 66 40 Land 150 164 Equipment 84 63 Accumulated depreciation - equipment (23) (12) Total Assets $566 $385 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $71 $58 Dividends payable 11 - Common stock, $1 par 37 18 Excess of paid-in capital over par 98 45 Retained earnings 349 264 Total liabilities and stockholders' equity $566 $385 The following additional information is taken from the records: - Land was sold for $35. - Equipment was acquired for cash. - There were no disposals of equipment during the year. - The common stock was issued for cash. - There was a $122 credit to Retained Earnings for net income. - There was a $37 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Hirayama Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from (used for) operating activities: Net income $ Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation $ Gain on sale of land $ Changes in current operating assets and liabilities: Increase in accounts receivable $ Increase in inventories $ Increase in accounts payable $ Net cash flow from operating activities $ Cash flows from (used for) investing activities: Cash received from sale of land $ Cash paid for purchase of equipment $ Net cash flow from investing activities $ Cash flows from (used for) financing activities: Cash received from issuing common stock $ Cash dividends $ Net cash flows from financing activities $ Net increase in cash $ Cash balance, January 1, 20Y2 $ Cash balance, December 31, 20Y2 $ b. Was Hirayama Industries Inc.'s net cash flows from operations more or less than net income?

Statement of Cash Flows
The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

Dec. 31, 20Y2
Dec. 31, 20Y1

Assets
Cash
$184
$58
Accounts receivable (net)
105
72
Inventories
66
40
Land
150
164
Equipment
84
63
Accumulated depreciation - equipment
(23)
(12)
Total Assets
$566
$385

Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
$71
$58
Dividends payable
11
-
Common stock, $1 par
37
18
Excess of paid-in capital over par
98
45
Retained earnings
349
264
Total liabilities and stockholders' equity
$566
$385

The following additional information is taken from the records:
- Land was sold for $35.
- Equipment was acquired for cash.
- There were no disposals of equipment during the year.
- The common stock was issued for cash.
- There was a $122 credit to Retained Earnings for net income.
- There was a $37 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Hirayama Industries Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y2

Cash flows from (used for) operating activities:
Net income
$
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Depreciation
$
Gain on sale of land
$
Changes in current operating assets and liabilities:
Increase in accounts receivable
$
Increase in inventories
$
Increase in accounts payable
$
Net cash flow from operating activities
$

Cash flows from (used for) investing activities:
Cash received from sale of land
$
Cash paid for purchase of equipment
$
Net cash flow from investing activities
$

Cash flows from (used for) financing activities:
Cash received from issuing common stock
$
Cash dividends
$
Net cash flows from financing activities
$

Net increase in cash
$
Cash balance, January 1, 20Y2
$
Cash balance, December 31, 20Y2
$

b. Was Hirayama Industries Inc.'s net cash flows from operations more or less than net income?

Added by Timothy H.