MANAGERIAL ACCOUNTING HANDOUT PROBLEM 14 Name Section Problem (10 points) Attached are the comparative balance sheets for Harrisburg Corporation for the years ending December 31, 20x3 and 20x2. The following additional information is available for this company for the year ending December 31, 20X3. (1) (2) HARRISBURG CORPORATION ADDITIONAL INFORMATION FOR PREPARING STATEMENT OF CASH FLOWS FOR YEAR ENDING DECEMBER 31, 20X3 The company purchased land for $200 by issuing long term notes payable. The company also sold land for cash during the year at again of 56. The company sold equipment during the year for $150. The equipment had an original cost of $250 and accumulated depreciation of 560. The company purchased equipment in the amount of $65 by issuing common stock. All other changes to the equipment account were due to purchases of equipment paid for in cash The company paid off $400 in long term notes payable during the year. The only other changes to this account, other than the purchase of land discussed above, was due to the issuance of long term notes during the year for cash The company paid cash dividends of $50 during the year. All other changes to retained earnings was due to net income for the year. (3) (4) REQUIRED: Prepare a statement of cash flows, in proper form, for the year ending December 31, 20X3. Use the indirect method and be sure to include a schedule of noncash investing and financing activities. HARRISRURG CORPORATION COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 20XB AND 20X2 20N S ASSETS Cash and Cash Equivalents Accounts Receivable (Net) Inventory 7 50S 450 250 935 Equipment Accumulated Depreciation Equipment TOTAL ASSETS ( 400 45) 3.1555 S 3.645 $ 180S 505 950 1.100 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Short Term Notes Payable Long Term Notes Payable Common Stock Paid In Capital in Excess of Par Value Retained Earnings TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 3,1551