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 $201 $66 Accounts receivable (net) 113 83 Inventories 71 45 Land 162 188 Equipment 91 72 Accumulated depreciation-equipment (25) (13) Total Assets $613 $441 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $77 $66 Dividends payable 12 - Common stock, $1 par 40 21 Paid-in capital: Excess of issue price over par—common stock 90 52 Retained earnings 394 302 Total liabilities and stockholders' equity $613 $441 The following additional information is taken from the records: Land was sold for $65. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $132 credit to Retained Earnings for net income. There was a $40 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$201		$66
Accounts receivable (net)	113		83
Inventories	71		45
Land	162		188
Equipment	91		72
Accumulated depreciation-equipment	(25)		(13)
	Total Assets	$613		$441
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$77		$66
Dividends payable	12		-
Common stock, $1 par	40		21
Paid-in capital: Excess of issue price over par—common stock	90		52
Retained earnings	394		302
	Total liabilities and stockholders' equity	$613		$441

The following additional information is taken from the records:

Land was sold for $65.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $132 credit to Retained Earnings for net income.
There was a $40 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.

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