Hartman, Inc. has prepared the following comparative balance sheets for 2014 and

Question

Hartman, Inc. has prepared the following comparative balance sheets for 2014 and 2015:

1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

2. The Retained Earnings account has been charged for dividends of $180,560 and credited for the net income for the year.

From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2015.

2015 2014 Cash $     356,240 $     186,660 Accounts Receivable $     181,780 $     142,740 Inventory $     183,000 $     219,600 Prepaid Expenses $        21,960 $        32,940 Plant assets $ 1,555,500 $ 1,281,000 Accumulated Depreciation $   (549,000) $   (457,500) Patents $     186,660 $     212,280 $ 1,936,140 $ 1,617,720 Accounts payable $     186,660 $     204,960 Accrued liabilities $        73,200 $        51,240 Mortgage payable $                   - $     549,000 Preferred Stock $     640,500 $                   - Additional paid-in capital $     146,400 $                   - Common stock $     732,000 $     732,000 Retained earnings $     157,380 $        80,520 $ 1,936,140 $ 1,617,720

Explanation / Answer

statement of cash flows (indirect method) for Hartman, Inc Cash Flows From Operating Activities $ Net Income 257420 Adjustments For: Depreciation 91500 Operating Profit Before Working Capital Change 348920 Increase in Accounts Receivable -39040 Prepaid Expenses 10980 Decarese in Inventory 36600 Accrued Liabilities 21960 Decrease in Accounts Payable -18300 Net Cash Flows From Operating Activities 361120 Cash Flows From Investing Activities Plant Assets purchased -274500 Decrease in Patents 25620 Cash Flows From Investing Activities -248880 Cash Flows From Financing Activities Additional Paid in Capital 146400 Preferred Stock 640500 Mortgage Paid -549000 Dividend Paid -180560 Cash Flows From Financing Activities 57340 Net Increase in Cash and Cash Equivalent 169580 Cash At the Beginning 186660 Cash & Cash Equivalent at the End 356240

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