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Preparation of a Statement of Cash Flows. The president of The Hardcastle Corporation understands that a statement of cash flows is one of the required

Preparation of a Statement of Cash Flows. The president of The Hardcastle Corporation
understands that a statement of cash flows is one of the required financial statements. He asks your
assistance in preparing the statement. He provides you with the following comparative balance sheets for
2031 and 2030, as well as the income statement for the year ended December 31,2031.
THE HARDCASTLE CORPORATION
Comparative Balance Sheets
December 31,
Assets 20312030
Current assets:
Cash $ 5,200 $ 4,200
Accounts receivable 20,00028,000
Inventory 47,00033,000
Prepaid expenses 1,5001,000
Total current assets $ 73,700 $ 66,200
Property, plant, and equipment:
Land $ 3,800 $ 2,800
Machinery and equipment, net 8,7008,500
Buildings, net 42,00047,000
Total property, plant, and equipment $ 54.500 $ 58,300
Other assets:
Patents, net $ 1,500 $ 1,700
Total assets $129,700 $126,200
Liabilities and Owners Equity 20312030
Current liabilities:
Notes payable $ 4,000 $ 5,800
Current maturities of long-term debt 2,0001,900
Accounts payable 5,5006,000
Accrued liabilities 15,00013,000
Total current liabilities $ 26,500 $ 26,700
Long-term debt: $ 18,000 $ 30,000
Stockholders equity:
Common stock, no par $ 61,000 $ 60,000
Retained earnings 24,2009,500
Total stockholders equity $ 85,200 $ 69,500
Total liabilities and stockholders equity $129,700 $126,200

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