MANAGERIAL ACCOUNTING HANDOUT PROBLEM 14 Name Score Section Problem (10 points). Hawthorn Corporation had the attached comparative balance sheets at December 31, 20X4 and 20X5. Additional information for 20x5 is also attached. REQUIRED: Prepare a statement of cash flows, in proper form, using the indirect method, for the year ending December 31, 20X5. Be sure to include a schedule of noncash investing and financing activities. 20X4 100 400 1.000 700 20 HAWTHORN CORPORATION COMPARATIVE BALANCE SHEETS AT DECEMBER 31, 20X5 AND 20X4 20X5 Cash s 50 $ Temporary Investments 650 Accounts Receivable (Net) 1.110 Inventory 840 Prepaid Expenses 14 Long Term Investments 4,220 Land 820 Buildings 2.440 Accumulated Depreciation Buildings 700) Equipment 760 Accumulated Depreciation Equipment 250) Patents 140 Total Assets $ 10.094 $ 4,000 1.100 2,000 600) 720 240) 160 9.360 s 660 800S 100 160 100 80 4.792 400 4.800 0 Accounts Payable Notes Payable. Short Term Accrued Liabilities Bonds Payable (Net of Premium) Mortgage Payable Preferred Stock, SIO par value Common Stock, $1 par value Paid In Capital in Excess of Par Value Retained Earnings Total Liabilities and Stockholders' Equity 400 600 2,060 752 710 2.000 500 540 9,360 $ 10,094 S HAWTHORN CORPORATION ADDITIONAL INFORMATION FOR PREPARATION OF STATEMENT OF CASH FLOWS FOR YEAR ENDING DECEMBER 31, 20X5 Dividends were declared and paid during the year in the following amount $30 on preferred stock and $500 on common stock. All the changes to the retained earnings account was due to net income or loss for the period 2) Long term investments were purchased during the year in the amount of 5420 The company also sold long term investments for $150 that had original cost of $200 (3) Land with an original cost of $280 was sold for 5.000 (4) A new building was purchased for $140. The company paid 50 down and financed the remainder by using a long term morte puyable. All changes to the accumulated depreciation account for building was doe to depreciation for the period. (5) The company purchased a patent for $20. All other changes to the potent.ccount were due to patent amortization (6) Equipment with an original cost of $60 and acced depreciation of $50 was sold for $6. All other changes to the equipment account went to purchases of equipment In addition, all other changes to the accumulated depict forment were doe to depreciation expense for the period 1) The change in the bonda payable was due to a redemption of bonds for cash during the period (8) The company issued 60 shares of common stock for 55 20 per share. In addition, the company purchased and retired 20 shares of cemed stock pat value