Dec. Dec.31,20Y1 31,20Y2 Assets Cash $183 $ 14 Accounts receivable (net) 55 49 Inventories 117 99 Land 250 330 Equipment 205 175 Accumulated depreciation-equipment (68) (42) Total assets $742 $625 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $51 $37 Dividends payable 5 Common stock, $1 par 125 80 Paid in capital: Excess of issue price over par |-common stock 85 70 Retained earnings 476 438 Total liabilities and stockholders' equity $742 $625
Statement of
The comparative
December 31 20Y2 and 20Y1, is as follows: (attached)
The following additional information is taken from the records:
A. Land was sold for $120.
B. Equipment was acquired for cash
C. There were no disposals of equipment during the year.
D. The common stock was issued for cash
E. There was a $62 credit to Retained Earrings fur net income.
F. There was a $24 debit to
declared.
A. Prepare a statement of cash flows, using the direct method of
presenting cash flows from operating activities
B. Was Olson-Jone's net cash flow from operations more or less
than net income? What is the source of this difference?
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