Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $137 $43 Accounts receivable (net) 78 54 Inventories 49 30 Land 112 122 Equipment 63 47 Accumulated depreciation-equipment (17) (9) Total Assets $422 $287 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $53 $43 Dividends payable 8 - Common stock, $10 par 28 13 Paid-in capital: Excess of issue price over par—common stock 73 34 Retained earnings 260 197 Total liabilities and stockholders' equity $422 $287 The following additional information is taken from the records: Land was sold for $25. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $91 credit to Retained Earnings for net income. There was a $28 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Olson-Jones Industries, Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ Cash flows from investing activities: $ Net cash flow provided by investing activities Cash flows from financing activities: $ Net cash flow provided by financing activities $ Cash at the beginning of the year Cash at the end of the year $ b. Was Olson-Jones’s net cash flow from operations more or less than net income? The source(s) of the difference are: Gain on the sale of land Purchase of equipment Sale of common stock Changes in current operating assets and liabilities Depreciation expense Dividends paid

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $137 $43 Accounts receivable (net) 78 54 Inventories 49 30 Land 112 122 Equipment 63 47 Accumulated depreciation-equipment (17) (9) Total Assets $422 $287 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $53 $43 Dividends payable 8 - Common stock, $10 par 28 13 Paid-in capital: Excess of issue price over par—common stock 73 34 Retained earnings 260 197 Total liabilities and stockholders' equity $422 $287 The following additional information is taken from the records: Land was sold for $25. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $91 credit to Retained Earnings for net income. There was a $28 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Olson-Jones Industries, Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ Cash flows from investing activities: $ Net cash flow provided by investing activities Cash flows from financing activities: $ Net cash flow provided by financing activities $ Cash at the beginning of the year Cash at the end of the year $ b. Was Olson-Jones’s net cash flow from operations more or less than net income? The source(s) of the difference are: Gain on the sale of land Purchase of equipment Sale of common stock Changes in current operating assets and liabilities Depreciation expense Dividends paid

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Statement of Cash Flows—Indirect Method

The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

	Dec. 31, 20Y2	Dec. 31, 20Y1
Assets
Cash	$137		$43
Accounts receivable (net)	78		54
Inventories	49		30
Land	112		122
Equipment	63		47
Accumulated depreciation-equipment	(17)		(9)
	Total Assets	$422		$287
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$53		$43
Dividends payable	8		-
Common stock, $10 par	28		13
Paid-in capital: Excess of issue price over par—common stock	73		34
Retained earnings	260		197
	Total liabilities and stockholders' equity	$422		$287

The following additional information is taken from the records:

Land was sold for $25.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $91 credit to Retained Earnings for net income.
There was a $28 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Olson-Jones Industries, Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from operating activities:
	$
Adjustments to reconcile net income to net cash flow from operating activities:


Changes in current operating assets and liabilities:



Net cash flow from operating activities		$
Cash flows from investing activities:
	$

Net cash flow provided by investing activities
Cash flows from financing activities:
	$

Net cash flow provided by financing activities
		$
Cash at the beginning of the year
Cash at the end of the year		$

b. Was Olson-Jones’s net cash flow from operations more or less than net income?

The source(s) of the difference are:

Gain on the sale of land
Purchase of equipment
Sale of common stock
Changes in current operating assets and liabilities
Depreciation expense
Dividends paid

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 6 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.