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.

View Solution:

Sale on SolutionInn
  • CreatedFebruary 20, 2015
  • Files Included
Post your question