istructions The following additional intormation is taken from the records: 1. Land was sold for $123. 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 $294 credit to Retained Earnings for net income. 6. There was an $98 debit to Retained Earnings for cash dividends declared. Required: A. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refor to the Labels and Amount Descriptions list provided for the exact wording of the answer cholces for text entries. Be sure to complefe the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any nogative adjustments. B. Was the net cash flow from operations for Olsonvones industries inc. more or less than net income? What is the source of this difference? Labels and Amount Descriptions Amortization of intangible assets Cash used for dividends Cash used for purchase of equipment Cash from sale of common stock Cash from sale of land December 31, 20Y2 Decrease in accounts payable Decrease in accounts receivable Decrease in cash Decrease in inventories Depreciation For the Year Ended December 31, 20Y2 Gain on sale of land Increase in accounts payable Increase in accounts receivable Increase in cash Increase in inventories Labels and Amount Descriptions Depreciation For the Year Ended December 31, 20 Y2 Gain on sale of land Increase in accounts payable Increase in accounts receivable Increase in cash Increase in inventories Loss on sale of land Net cash flow from operating activities Net cash flow used for operating activities Net cash flow from investing activities Net cash flow used for investing activities Net cash flow from financing activities Net cash flow used for financing activities Net income Net loss Statement of Cash Flows Olson-Jones Industries Inc. Statement of Cash Flows (Label) 1 Cash flows from operating activities: 2 3. Adjustments to reconcile net income to net cash flow from operating activities: 4 5 6 Changes in current operating assets and liabilities: 7 8 9 10 11 Cash flows from (used for) investing activities: 12 13 14 Statement of Cash Flows 6 Changes in current operating assets and liabilities: 7 8 9 10 11 Cash flows from (used for) investing activities: 12. 13 14 15 Cash flows from (used for) financing activities: 16 17 18 19 20. Cash at the beginning of the year 11 Cash at the end of the year B. Was the net cash flow from operations for Olsonvones industries inc. more or less than net income? What is the source of this difference? Net cash flow from operations was than net income. The source(s) of the difterence are: Check all that apply. Changes in current operating assets and liabilites Depreciation expense Gain on the sale of land Dividends paid Sale of common stock Purchase of equipment B. Was the net cash flow from operations for Olson-Jones industries inc. more or less than net income? What is the source of this difference? Net cash flow from operations was than net income. The source(s) of the difference are: Check all that apply. Changes in current operating assets and liabilites Depreciation expense Gain on the sale of land Dividends paid Sale of common stock Purchase of equipment
