Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 10

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, 2017, together with comparative data for the year ended December 31, 2016. From the statement of cash flows for the year ended December 31, 2017, you determine the following:
• Net income for the year ended December 31, 2017, was $47,000.
• Dividends paid during the year ended December 31, 2017, were $33,500.
• Accounts receivable decreased $5,000 during the year ended December 31, 2017.
• The cost of new buildings acquired during 2017 was $62,500.
• No buildings were disposed of during 2017.
• The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2017, was $89,000.

Required:
a. Complete the December 31, 2017, balance sheet. (Hint: Long-term debt is the last number to compute to make the balance sheet balance.)b. Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.