Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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		$209	$67
Accounts receivable (net)		119	84
Inventories		74	46
Land		170	191
Equipment		96	74
Accumulated depreciation-equipment		(26)	(13)
	Total Assets	$642	$449
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$81	$67
Dividends payable		13	-
Common stock, $1 par		42	21
Paid-in capital: Excess of issue price over par—common stock		102	53
Retained earnings		404	308
	Total liabilities and stockholders' equity	$642	$449

The following additional information is taken from the records:

Land was sold for $53.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $138 credit to Retained Earnings for net income.
There was a $42 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:
Decrease 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

Solutions

Expert Solution

ekkarill92 answered 7 months ago

Next > < Previous

Related Solutions

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $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...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $174 $57 Accounts receivable (net) 99 72 Inventories 62 39 Land 142 162 Equipment 80 62 Accumulated depreciation-equipment (21) (11) Total Assets $536 $381 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $68 $57 Dividends payable 11 - Common stock, $10 par 35 18 Paid-in capital: Excess of issue price...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $124 $40 Accounts receivable (net) 71 50 Inventories 45 27 Land 102 113 Equipment 57 43 Accumulated depreciation-equipment (15) (8) Total Assets $384 $265 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $48 $40 Dividends payable 8 - Common stock, $1 par 25 12 Paid-in capital: Excess of issue price...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $150 $48 Accounts receivable (net) 86 60 Inventories 54 33 Land 123 136 Equipment 69 52 Accumulated depreciation-equipment (19) (10) Total Assets $463 $319 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $58 $48 Dividends payable 9 - Common stock, $1 par 31 15 Paid-in capital: Excess of issue price...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $192 $60 Accounts receivable (net) 109 76 Inventories 69 41 Land 157 171 Equipment 88 66 Accumulated depreciation-equipment (24) (12) Total Assets $591 $402 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $74 $60 Dividends payable 12 - Common stock, $1 par 39 19 Paid-in capital: Excess of issue price...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $209 $68 Accounts receivable (net) 119 86 Inventories 74 47 Land 170 193 Equipment 96 75 Accumulated depreciation-equipment (26) (13) Total Assets $642 $456 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $81 $68 Dividends payable 13 - Common stock, $1 par 42 21 Paid-in capital: Excess of issue price...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $202 $66 Accounts receivable (net) 115 83 Inventories 72 45 Land 164 187 Equipment 92 72 Accumulated depreciation-equipment (25) (13) Total Assets $620 $440 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $78 $66 Dividends payable 12 - Common stock, $10 par 41 21 Paid-in capital: Excess of issue price...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $182 $60 Accounts receivable (net) 103 75 Inventories 65 41 Land 148 167 Equipment 83 65 Accumulated depreciation-equipment (22) (11) Total Assets $559 $397 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $70 $60 Dividends payable 11 - Common stock, $1 par 37 19 Paid-in capital: Excess of issue price...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $145 $48 Accounts receivable (net) 83 60 Inventories 52 33 Land 118 133 Equipment 67 52 Accumulated depreciation-equipment (18) (9) Total Assets $447 $317 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $56 $48 Dividends payable 9 - Common stock, $1 par 30 15 Paid-in capital: Excess of issue price...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31,...

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 $148 $49 Accounts receivable (net) 84 62 Inventories 53 34 Land 121 138 Equipment 68 54 Accumulated depreciation-equipment (18) (9) Total Assets $456 $328 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $57 $49 Dividends payable 9 - Common stock, $1 par 30 15 Paid-in capital: Excess of issue price...

Subjects