[adar]

How do I convert information from cash flow statements to Balance sheet? I am completely lost with this question and have been going over my text. Can anyone explain the process I should be taking and how to apply it. Thanks in advance

Prepare a balance sheet and statement of changes of Owner’s equity using cash flow statement data.

Below is an extract from the cash flow statement for Harris Ltd for the year ended 31 December 2009 together with the note reconciling profit to cash from operating activities, and the firm’s balance sheet at 31 December 2008.

Harris Ltd
Cash Flow Statement
For the Year ended 31 December 2009
$
Cash flows from operating activities:-
Net cash provided from operating activities (note 1) 56 000

Cash flows from investing activities:
Purchase of buildings (90 000)
Proceeds from sale of land at its cost 7 000
Net cash used by investing activities (83 000)

Cash flows from financing activities:
Proceeds from long-term borrowings 15 000
Proceeds from ordinary shares 8 000
Payment of cash dividends on ordinary share (5 000)
Net cash used by financing activities 18 000
Net decrease in cash for the year (9 000)
NOTE 1
Reconciliation of profit to cash from operating activities:
Profit 13 000
Add (deduct) items not affecting cash:
Depreciation expense 29 000
Increase in accounts receivable (6 000)
Decrease in Inventory 30 000
Decrease in Income tax payable (13 000)
Increase in accounts payable 3 000
Net Cash provided by operating activities 56 000






Harris Ltd
Balance Sheet
At 31 December 2008
$
Assets
Cash 15 000
Accounts Receivable 61 000
Inventory 76 000
Total Current Assets 152 000
Land 34 000
Buildings 118 000
Less: Accumulated depreciation ( 72 000)
Total Land and Buildings 80 000
Total Assets $232 000

Liabilities
Income Tax payable 49 000
Accounts Payable 58 000
Total Current Payable 107 000
Long-Term Borrowings 50 000
Total Liabilities 157 000

Owners’ Equity
Ordinary contributed Capital 20 000
Retained Earnings 55 000
Total Owners Equity 75 000
Total Liabilities and owners’ Equity 232 000

Required
Using the above information, prepare the balance sheet for Harris Ltd at 31 December 2009.