Reference no: EM13535534

Complete balance sheet and prepare a statement of cash flows-indirect method Following is a partially completed 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 of 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.		1 34,000
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
Note 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 owners' equity	$	$ 221,000
Total liabilities and owners' equity	$	$ 681,000

Required:

a. Complete the December 31, 2011, balance sheet.

b. Prepare a statement of cash flows for the year ended December 31, 2011, using the indirect method.