Question

Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with...

Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the year ended December 31, 2019. From the statement of cash flows for the year ended December 31, 2020, you determine the following:

  • Net income for the year ended December 31, 2020, was $97,500.
  • Dividends paid during the year ended December 31, 2020, were $65,500.
  • Accounts receivable decreased $11,000 during the year ended December 31, 2020.
  • The cost of new buildings acquired during 2020 was $129,000.
  • No buildings were disposed of during 2020.
  • The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2020, was $187,500.
HOEMAN INC.
Comparative Balance Sheets
At December 31, 2020 and 2019
2020 2019
Assets:
Current assets:
Cash $55,000 $47,000
Accounts receivable 134,000 145,000
Inventory 163,000 181,000
Total current assets $352,000 $373,000
Land 143,000 143,000
Buildings 400,500 271,500
Less: Accumulated depreciation (130,000) (114,500)
Total land & buildings $413,500 $300,000
Total assets $765,500 $673,000
Liabilities:
Current liabilities:
Accounts payable $164,000 $193,500
Note payable 162,000 125,500
Total current liabilities $326,000 $319,000
Long-term debt $172,500 $126,500
Stockholders' Equity:
Common stock $53,500 $46,000
Retained earnings 213,500 181,500
Total stockholders' equity $267,000 $227,500
Total liabilities and stockholders' equity $765,500 $673,000

Required:

  1. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
HOEMAN INC.
Statement of Cash Flows
For the Year Ended December 31, 2020
Cash flows from operating activities:
Net income $97,500
Add (deduct) items not affecting cash:
Decrease in accounts receivable 11,000
Cash flows from investing activities:
Cash paid to acquire new buildings $(129,000)
  
Cash flows from financing activities:
Payment of cash dividends on common stock (65,500)
Cash balance, January 1, 2020
Cash balance, December 31, 2020
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with...
Following is a partially completed balance sheet for Hoeman Inc. at December 31, 2020, together with comparative data for the year ended December 31, 2019. From the statement of cash flows for the year ended December 31, 2020, you determine the following: Net income for the year ended December 31, 2020, was $97,500. Dividends paid during the year ended December 31, 2020, were $65,500. Accounts receivable decreased $11,000 during the year ended December 31, 2020. The cost of new buildings...
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019....
Presented here are the comparative balance sheets of Hames Inc. at December 31, 2020 and 2019. Sales for the year ended December 31, 2020, totaled $660,000. HAMES INC. Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash $ 25,000 $ 19,000 Accounts receivable 78,000 72,000 Merchandise inventory 103,000 99,000 Total current assets $ 206,000 $ 190,000 Land 50,000 40,000 Plant and equipment 125,000 110,000 Less: Accumulated depreciation (65,000 ) (60,000 ) Total assets $ 316,000 $ 280,000 Liabilities...
The current sections of Blossom Rentals balance sheets at December 31, 2021, and 2020, are presented...
The current sections of Blossom Rentals balance sheets at December 31, 2021, and 2020, are presented here. Blossom’ profit for 2021 was $146,880. Depreciation expense was $23,040. 2021 2020 Current assets Cash $100,800 $95,040 Accounts receivable 105,600 85,440 Inventory 151,680 165,120 Prepaid expenses 25,920 21,120 Total current assets $384,000 $366,720 Current liabilities Accrued expenses payable $14,400 $4,800 Accounts payable 81,600 88,320 Total current liabilities $96,000 $93,120 Prepare the net cash provided by operating activities section of the company’s statement of...
Indigo Inc. had the following balance sheet at December 31, 2019. INDIGO INC. BALANCE SHEET DECEMBER...
Indigo Inc. had the following balance sheet at December 31, 2019. INDIGO INC. BALANCE SHEET DECEMBER 31, 2019 Cash $21,850 Accounts payable $31,850 Accounts receivable 23,050 Notes payable (long-term) 42,850 Investments 33,850 Common stock 101,850 Plant assets (net) 81,000 Retained earnings 25,050 Land 41,850 $201,600 $201,600 During 2020, the following occurred. 1. Indigo Inc. sold part of its debt investment portfolio for $15,301. This transaction resulted in a gain of $3,701 for the firm. The company classifies these investments as...
The balance sheet for December 31, 2018, December 31, 2017, and the income statement for the...
The balance sheet for December 31, 2018, December 31, 2017, and the income statement for the year ended December 31, 2018, for Rocket Company follows. Rocket Company Balance Sheet December 31, 2018 and 2017 2018    2017 Assets Cash $ 25,000    $ 20,000 Accounts receivable, net 60,000    70,000 Inventory 80,000    100,000 Land 50,000    50,000 Building and equipment 130,000*   115,000 Accumulated depreciation (85,000)   (70,000) Total assets $260,000    $285,000 Liabilities and Stockholders' Equity Accounts payable $ 30,000    $ 35,000 Income taxes payable 4,000   ...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $115 $37 Accounts receivable (net) 65 47 Inventories 41 26 Land 94 104 Equipment 53 41 Accumulated depreciation-equipment (14) (7) Total Assets $354 $248 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $45 $37 Dividends payable 7 - Common stock, $1 par 23 12 Paid-in capital: Excess of issue price...
GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020   Revenues:      Service revenue (clinic,...
GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020   Revenues:      Service revenue (clinic, racing, TEAM) $ 533,000              Sales revenue (MU watches) 108,000                Total revenues $ 641,000         Expenses:          Cost of goods sold (watches) 65,000                  Operating expenses 303,776                  Depreciation expense 45,000                  Interest expense 29,224                  Income tax expense 54,000                     Total expenses 497,000         Net income $ 144,000       GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019      2020     2019 Increase (I) or...
Dole Cole Company’s balance sheet is as follows: Dole Cole Company Balance Sheet December 31 Assets...
Dole Cole Company’s balance sheet is as follows: Dole Cole Company Balance Sheet December 31 Assets 2019 2018 RM RM Cash 15,000 16,000 Marketable securities 7,200 8,000 Accounts receivable 34,100 42,200 Inventories 82,000 50,000 Total current assets 138,300 116,200 Land and buildings 150,000 150,000 Machinery and equipment 200,000 190,000 Furniture and fixtures 54,000 50,000 other 11,000 10,000 Total gross fixed assets 415,000 400,000 Less: Accumulated depreciation 145,000 115,000 Net fixed assets 270,000 285,000 Total assets 408,300 401,200 Liabilities and Stockholders'...
Following are selected balance sheet accounts of Monty Bros. Corp. at December 31, 2020 and 2019,...
Following are selected balance sheet accounts of Monty Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Selected balance sheet accounts Assets 2020 2019 Increase (Decrease) Accounts receivable $34,400 $23,900 $10,500 Property, plant, and equipment 279,500 247,600 31,900 Accumulated depreciation—plant assets (179,800 ) (168,500 ) (11,300 ) Liabilities and stockholders’ equity 2020...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $239,430 $222,980 Accounts receivable (net) 86,740 80,090 Inventories 244,850 237,110 Investments 0 91,860 Land 125,590 0 Equipment 270,150 209,640 Accumulated depreciation—equipment (63,250) (56,530) Total assets $903,510 $785,150 Liabilities and Stockholders' Equity Accounts payable $163,540 $154,670 Accrued expenses payable 16,260 20,410 Dividends payable 9,040 7,070 Common stock, $10 par 48,790 38,470...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT