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 |
$116 |
|
$38 |
|
| Accounts receivable (net) |
67 |
|
48 |
|
| Inventories |
42 |
|
26 |
|
| Land |
95 |
|
109 |
|
| Equipment |
54 |
|
42 |
|
| Accumulated depreciation-equipment |
(14) |
|
(7) |
|
|
Total Assets |
$360 |
|
$256 |
|
| Liabilities and Stockholders'
Equity |
|
|
| Accounts payable (merchandise creditors) |
$45 |
|
$38 |
|
| Dividends payable |
7 |
|
- |
|
| Common stock, $1 par |
24 |
|
12 |
|
| Paid-in capital: Excess of issue price over
par—common stock |
55 |
|
30 |
|
| Retained earnings |
229 |
|
176 |
|
|
Total liabilities and stockholders' equity |
$360 |
|
$256 |
|
The following additional information is taken from the
records:
- Land was sold for $35.
- Equipment was acquired for cash.
- There were no disposals of equipment during the year.
- The common stock was issued for cash.
- There was a $77 credit to Retained Earnings for net
income.
- There was a $24 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 |
|
$ |
