Reference no: EM132731514

Hayashi, Inc. earned net income of $450,000 in 20X2. Hayashi provided the following information:

Hayashi, Inc.

Comparative Balance Sheets

At December 31, 20X1 and 20X2

                                                         20X1                   20X2

Bonds payable                           $ -                265,000

Mortgage payable                     50,000                  -

Common stock                         187,500                    187,500

Paid-in capital in excess of par       140,000             140,000

Retained earnings                      912,500            1,162,500

Required:

Problem 1: Compute the financing cash flows for the current year.