Statement of Cash Flow – Practice # 2

From the Balance Sheet shown below, prepare the Statement of Cash Flow for the year
ended December 31st 2014.

 The Net Income for the year ended December 31st 2014 was $94,000.
 Dividends paid during the year ended December 31st 2014 were $67,000.

Hoeman, Inc.
Comparative Balance Sheets
At December 31st.2014 and December 31st. 2013

2014 2013 Difference Sign

Assets
Current Assets
Cash $ 52,000 $ 46,000
Accounts receivable 124,000 134,000
Merchandise Inventory 156,000 176,000
Total of current assets $ 332,000 $ 356,000
Fixed Assets
Land $ 140,000 $ 140,000
Buildings 415,000 290,000
Less: Accumulated depreciation 120,000 105,000
Total of fixed assets $ 435,000 $ 325,000
Total of Assets $ 767,000 $ 681,000
Liabilities
Current Liabilities
Accounts payable $ 167,000 $ 197,000
Notes payable 155,000 124,000
Total of current liabilities $ 322,000 $ 321,000
Long-term debt $ 192,000 $ 139,000
Total of Liabilities $ 514,000 $ 460,000
Owners´equity
Common stock $ 50,000 $ 45,000
Retained Earnings 203,000 176,000
Total of Owners´equity $ 253,000 $ 221,000
Total of Liabilities plus Owners´equity $ 767,000 $ 681,000

Manager´s signature Accountant´s signature