Accounting What the Numbers Mean: P9-25 Following balance sheet for Hoeman, Inc.

Accounting What the Numbers Mean
P9-25 Complete balance sheet and prepare a statement of cash flows - indirect method
Following balance sheet for Hoeman, Inc., at December 31, 2011, together with comparative data for the year ended December 31, 2010. From the statement of cash flows for the year ended December 31, 2011, you determine the following:
- Net income for the year ended December 31, 2011, was $94,000.
- Dividends paid during the year ended December 31, 2011, were $67,000.
- Accounts receivable decreased $10,000 during the year ended December 31, 2011.
- The cost of new buildings acquired during 2011 was $125,000.
- No buildings were disposed during 2011.
- The land account was not affected by any transactions during the year, but the fair market value of the land at December 31, 2011, was $178,000.
Hoeman, Inc.
Comparative Balance Sheets
At December 31, 2011 and 2010
2011 2010
Assets
Current assets
Cash 52,000 46,000
Accounts receivable 134,000
Inventory 156,000 176,000
Total current assets 356,000
Land 140,000
Buildings 290,000
Less: accumulated depreciation (120,000) (105,000)
Total land and buildings 325,000
Total Assets $681,000

Liabilities
Current liabilities:
Accounts payable 197,000
Notes payable 155,000 124,000
Total current liabilities 322,000 321,000
Long-term debt 139,000
Owners' Equity
Common stock 50,000 45,000
Retained earnings 176,000
Total owner's equity 221,000
Total liabilities an owner's equity $681,000

Required:
a. Complete the December 31, 2011 balance sheet. (Hint: Long-term debt is the last number to make the balance sheet balance)
b. Prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method.
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