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

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 $187 $62
Accounts receivable (net) 106 78
Inventories 67 43
Land 152 175
Equipment 86 68
Accumulated depreciation-equipment (23) (12)
Total Assets $575 $414
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $72 $62
Dividends payable 12 -
Common stock, $1 par 38 19
Paid-in capital: Excess of issue price over par—common stock 82 48
Retained earnings 371 285
Total liabilities and stockholders' equity $575 $414

The following additional information is taken from the records:

Land was sold for $58.

Equipment was acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $124 credit to Retained Earnings for net income.

There was a $38 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:
Net income $
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation
Gain on sale of land
Changes in current operating assets and liabilities:
Increase in accounts receivable
Increase in inventories
Increase in accounts payable
Net cash flow from operating activities $
Cash flows from (used for) investing activities:
Cash from sale of land $
Cash used for purchase of equipment
Net cash flow from investing activities
Cash flows from (used for) financing activities:
Cash from sale of common stock $
Cash used for dividends
Net cash flow from financing activities
Increase in cash $
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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Expert Solution

Olson-Jones Industries Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from operating activities:
Net income $124
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation (23-12) 11
Gain on sale of land (175-152-58) -35
Changes in current operating assets and liabilities:
Increase in accounts receivable (106-78) -28
Increase in inventories (67-43) -24
Increase in accounts payable (72-62) 10
Net cash flow from operating activities $58
Cash flows from (used for) investing activities:
Cash from sale of land $58
Cash used for purchase of equipment (86-68) -18
Net cash flow from investing activities 40
Cash flows from (used for) financing activities:
Cash from sale of common stock (38+82-19-48) $53
Cash used for dividends (38-12) -26
Net cash flow from financing activities 27
Increase in cash $125
Cash at the beginning of the year 62
Cash at the end of the year $187
b. Was Olson-Jones Industries Inc.’s net cash flow from operations more or less than net income?
Less

ekkarill92 answered 2 years ago
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