The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20
ID: 2583383 • Letter: T
Question
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 Accounts receivable (net) Inventories Land Equipment Accumulated depreciation-equipment $161 91 57 130 73 (20) $492 $53 67 36 150 58 (10) $354 Total Assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $62 10 32 71 317 $492 $53 17 41 243 $354 Total liabilities and stockholders' equity The following additional information is taken from the records: 1. Land was sold for $50. 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 $106 credit to Retained Earnings for net income. 6. There was a $32 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 Cash flows from operating activities: Netpime Adjustments to net income to net cash flow from operating activities: Changes in current operating assets and liabilities: llexpcengage.comactivityservice/tun/htmi5/handler.jsp?id-781..cengagenow.comäxdm,c activityService.activity 151198534045 7&Explanation / Answer
Statement of cash flow :
Cash flow from operating activities Net income 106 Adjustment to reconcile net income Depreciation 10 Increase account receivable (24) Increase inventory (21) Increase account payable 9 Increase dividend payable 10 Gain on sale of Land (30) Net cash flow from operating activities 60 Cash flow from investing activities Land sold for cash 50 Equipment acquired (15) Net cash flow from investing activities 35 Cash flow from financing activities Issue common stock 45 Dividend paid (32) Net cash flow from financing activities 13 Net cash flow 108 Beginning cash 53 Ending cash 161