Following are a statement of cash flows (indirect method) for Harris, Inc., for the year ended December 31, 2014, and the firm's balance sheet at December 31, 2013:
HARRIS, INC
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash Flows from Operating Activities:
| Cash Flows from Operating Activities: |
|
|
| Net income |
15,900 |
|
| Add (deduct) items not affecting cash: |
|
|
| Depreciation expense |
30,900 |
|
| Increase in accounts receivable |
(9,000 |
) |
| Decrease in merchandise inventory |
31,900 |
|
| Increase in accounts payable |
4,400 |
|
| Payment of short-term debt |
(6,400 |
) |
| Payment of notes payable |
(10,600 |
) |
| |
| Net cash provided by operating activities |
$ |
57,100 |
|
| Cash Flows from Investing Activities: |
|
| Purchase of buildings |
|
(90,500 |
) |
| Proceeds from sale of land at its cost |
|
8,300 |
|
| |
| Net cash used by investing activities |
$ |
(82,200 |
) |
| Cash Flows from Financing Activities: |
|
|
|
| Proceeds from issuance of long-term debt |
|
15,700 |
|
| Proceeds from issuance of common stock |
|
9,700 |
|
| Payment of cash dividends on common stock |
|
(6,200 |
) |
| |
| Net cash provided by financing activities |
$ |
19,200 |
|
| |
| Net decrease in cash for the year |
$ |
(5,900 |
) |
| |
HARRIS INC
Balance Sheet
At December 31, 2013 |
| Assets |
|
|
| Cash |
$ |
15,200 |
| Accounts receivable |
|
63,500 |
| Merchandise inventory |
|
77,600 |
| |
| Total current assets |
$ |
156,300 |
|
| Land |
|
34,800 |
|
| Buildings |
|
119,100 |
|
| Less: Accumulated depreciation |
|
(72,100 |
) |
| |
| Total land and buildings |
$ |
81,800 |
|
| |
| Total assets |
$ |
238,100 |
|
| |
| Liabilities |
|
|
|
| Accounts payable |
$ |
60,200 |
|
| Short-term debt |
|
18,000 |
|
| Notes payable |
|
35,100 |
|
| |
| Total current liabilities |
$ |
113,300 |
|
| Long-term debt |
|
50,900 |
|
| Stockholders' Equity |
|
|
|
| Common stock, no par |
$ |
22,200 |
|
| Retained earnings |
|
51,700 |
|
| |
| Total Stockholders' Equity |
$ |
73,900 |
|
| |
| Total liabilities and Stockholders' Equity |
$ |
238,100 |
Required:
a. Using the preceding information, complete the balance sheet for Harris, Inc., at December 31, 2014.
b. Complete the statement of changes in retained earnings for the year ended December 31, 2014. (Amounts to be deducted should be indicated by minus sign.)
Statement of Changes in Retained Earnings
Year End Dec 31 2014
Retained earnings Jan 1 2014:
Add: Net income for the year:
Less: Dividends for the year:
Retained earnings balance Dec 31 2014: