Complete balance sheet and prepare a statement of cash flows-indirect method Following is a partially completed balance sheet for Hoeman, Inc., at December 31, 2011, together with comparative data for the year ended December 31, 2010. From the statement of cash flows for the year ended December 31, 2011, you determine the following:
- Net income for the year ended December 31, 2011, was $94,000.
- Dividends paid during the year ended December 31, 2011, were $67,000.
- Accounts receivable decreased $10,000 during the year ended December 31,
2011.
- The cost of new buildings acquired during 2011 was $125,000.
- No buildings were disposed of during 2011.
- The land account was not affected by any transactions during the year, but the fair market value of the land at December 31, 2011, was $178,000.
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HOEMAN, INC.
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Comparative Balance Sheets
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At December 31, 2011 and 2010
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2011
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2010
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Assets
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Current assets:
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Cash
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$ 52,000
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$ 46,000
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Accounts receivable.
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1 34,000
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Inventory
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156,000
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176,000
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Total current assets
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$
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$ 356,000
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Land
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$
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140,000
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Buildings
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290,000
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Less: Accumulated depreciation
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(120,000)
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(105,000)
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Total land and buildings
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$
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$ 325,000
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Total assets
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$
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$ 681,000
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Liabilities
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Current liabilities:
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Accounts payable
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$
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$ 197,000
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Note payable
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155,000
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124,000
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Total current liabilities
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$ 322,000
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$ 321,000
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Long-term debt
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$
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$ 139,000
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Owners' Equity
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Common stock
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$ 50,000
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$ 45,000
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Retained earnings
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176,000
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Total owners' equity
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$
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$ 221,000
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Total liabilities and owners' equity
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$
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$ 681,000
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Required:
a. Complete the December 31, 2011, balance sheet.
b. Prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method.