Question: Hiramatsu Exports Inc is a wholesaler of Japanese goods By

Hiramatsu Exports, Inc., is a wholesaler of Japanese goods. By the end of 20X0, the company’s cash balance had dropped to ¥9 million, despite net income of ¥254 million in 20X0. Its transactions affecting income or cash in 20X0 were as follows (¥ in millions):
1. Sales were ¥2,610, all on credit. Cash collections from customers were ¥2,515.
2. The cost of items sold was ¥1,699.
3. Inventory increased by ¥56.
4. Cash payments on trade accounts payable were ¥1,758.
5. Payments to employees were ¥305; accrued wages payable decreased by ¥24.
6. Other operating expenses, all paid in cash, were ¥94.
7. Interest expense, all paid in cash, was ¥26.
8. Income tax expense was ¥105; cash payments for income taxes were ¥108.
9. Depreciation was ¥151.
10. A warehouse was acquired for ¥540 cash.
11. Equipment was sold for ¥47; original cost was ¥206, accumulated depreciation was ¥159.
2. The firm received ¥28 for issue of common stock.
13. Long-term debt was retired for ¥21 cash.
14. The company paid cash dividends of ¥98.
Prepare a statement of cash flows for 20X0 using the direct method for reporting cash flows from operating activities. Calculate the cash balance as of January 1, 20X0. Omit supporting schedules.

  • CreatedFebruary 20, 2015
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