[The following information applies to the questions displayed below.] Hanks Company is developing its annual financial...

   

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[The following information applies to the questions displayed below.] Hanks Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Fixed assets (net) Accounts payable Wages payable Note payable, long-term Common stock, no par Retained earnings Income statement for current year Sales Cost of goods sold Expenses Net income Current Year Prior Year $ 33,600 $ 19,000 27,400 30,200 39,800 72,100 36,600 73,000 $158,800 $ 22,400 $172,900 $ 28,300 2,300 2,100 43,000 49,300 75,500 60,700 23,800 24,300 $172,900 $158,800 $ 85,000 (48,000) (35,000) $ 2,000 Additional data: a. Bought fixed assets for cash, $6,000. b. Paid $6,300 on the long-term note payable. c. Sold unissued common stock for $14,800 cash. d. Declared and paid a $2,500 cash dividend. e. Incurred the following expenses: depreciation, $6,900; wages, $12,500; taxes, $2,500; and other, $13,100. Required: 1. Prepare statement of cash flows T-accounts using the indirect method to report cash flows from operating activities. (Enter all amounts as positive values.) Operating Investing Financing Cash 0 0 2. Prepare the statement of cash flows. (List cash outflows as negative amounts.) HANKS COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Total adjustments Cash flows from investing activities: Cash flows from financing activities: 0 0 0 0 $ 0 [The following information applies to the questions displayed below.] Hanks Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Fixed assets (net) Accounts payable Wages payable Note payable, long-term Common stock, no par Retained earnings Income statement for current year Sales Cost of goods sold Expenses Net income Current Year Prior Year $ 33,600 $ 19,000 27,400 30,200 39,800 72,100 36,600 73,000 $158,800 $ 22,400 $172,900 $ 28,300 2,300 2,100 43,000 49,300 75,500 60,700 23,800 24,300 $172,900 $158,800 $ 85,000 (48,000) (35,000) $ 2,000 Additional data: a. Bought fixed assets for cash, $6,000. b. Paid $6,300 on the long-term note payable. c. Sold unissued common stock for $14,800 cash. d. Declared and paid a $2,500 cash dividend. e. Incurred the following expenses: depreciation, $6,900; wages, $12,500; taxes, $2,500; and other, $13,100. Required: 1. Prepare statement of cash flows T-accounts using the indirect method to report cash flows from operating activities. (Enter all amounts as positive values.) Operating Investing Financing Cash 0 0 2. Prepare the statement of cash flows. (List cash outflows as negative amounts.) HANKS COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Total adjustments Cash flows from investing activities: Cash flows from financing activities: 0 0 0 0 $ 0