The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, Dec. 31, 20Υ2 20Y1 Assets Cash $155 $52 Accounts receivable (net) 89 65 Inventories 56 36 Land 127 145 Equipment 71 57 Accumulated depreciation-equipment (19) (10) Total Assets $479 $345 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $60 $52 Dividends payable 10 Common stock, $1 par 32 16 Paid-in capital: Excess of issue price over par- 69 40 common stock Retained earnings 308 237 Total liabilities and stockholders' equity $479 $345 The following additional information is taken from the records: 1. Land was sold for $45. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. 5. There was a $103 credit to Retained Earnings for net income. 6. There was a $32 debit to Retained Earnings for cash dividends dedared. 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 (used for) investing activities: Net cash flow from investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year b. Was Olson-Jones Industries Inc.'s net cash flow from operations more or less than net income?
The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, Dec. 31, 20Υ2 20Y1 Assets Cash $155 $52 Accounts receivable (net) 89 65 Inventories 56 36 Land 127 145 Equipment 71 57 Accumulated depreciation-equipment (19) (10) Total Assets $479 $345 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $60 $52 Dividends payable 10 Common stock, $1 par 32 16 Paid-in capital: Excess of issue price over par- 69 40 common stock Retained earnings 308 237 Total liabilities and stockholders' equity $479 $345 The following additional information is taken from the records: 1. Land was sold for $45. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. 5. There was a $103 credit to Retained Earnings for net income. 6. There was a $32 debit to Retained Earnings for cash dividends dedared. 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 (used for) investing activities: Net cash flow from investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year b. Was Olson-Jones Industries Inc.'s net cash flow from operations more or less than net income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:
Dec. 31,
Dec. 31,
20Υ2
20Y1
Assets
Cash
$155
$52
Accounts receivable (net)
89
65
Inventories
56
36
Land
127
145
Equipment
71
57
Accumulated depreciation-equipment
(19)
(10)
Total Assets
$479
$345
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
$60
$52
Dividends payable
10
Common stock, $1 par
32
16
Paid-in capital: Excess of issue price over par-
69
40
common stock
Retained earnings
308
237
Total liabilities and stockholders' equity
$479
$345
The following additional information is taken from the records:
1. Land was sold for $45.
2. Equipment was acquired for cash.
3. There were no disposals of equipment during the year.
4. The common stock was issued for cash.
5. There was a $103 credit to Retained Earnings for net income.
6. There was a $32 debit to Retained Earnings for cash dividends dedared.
Transcribed Image Text: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 (used for) investing activities:
Net cash flow from investing activities
Cash flows from (used for) financing activities:
Net cash flow from financing activities
Cash at the beginning of the year
Cash at the end of the year
b. Was Olson-Jones Industries Inc.'s net cash flow from operations more or less than net income?
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