Statement of Cash FlowsA method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.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		$107		$34
Accounts receivable (net)		61		43
Inventories		38		23
Land		87		97
Equipment		49		37
Accumulated depreciation-equipment		(13)		(7)
	Total Assets	$329		$227
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$41		$34
Dividends payable		7		-
Common stock, $1 par		22		11
Paid-in capital: Excess of issue price over parcommon stock		55		27
Retained earnings		204		155
	Total liabilities and stockholders' equity	$329		$227

The following additional information is taken from the records:

1. Land was sold for $25.
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 $71 credit to Retained Earnings for net income.
6. There was a $22 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 Cash received from sale of common stock Decrease in accounts receivable Increase in inventories Net income	$
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation Decrease in accounts receivable Depreciation Increase in accounts receivable Loss on sale of land
Gain on sale of land Decrease in inventories Gain on sale of land Increase in accounts payable Loss on sale of land
Changes in current operating assets and liabilities:
Increase in accounts receivable Decrease in accounts receivable Decrease in inventories Depreciation Increase in accounts receivable
Increase in inventories Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Increase in inventories
Increase in accounts payable Cash paid for dividends Decrease in accounts payable Depreciation Increase in accounts payable
Net cash flow from operating activities		$
Cash flows from (used for) investing activities:
Cash from sale of land Cash paid for dividends Cash from sale of land Depreciation Gain on sale of land	$
Cash used for purchase of equipment Cash used for purchase of equipment Cash received from sale of common stock Depreciation Increase in inventories
Net cash flow from investing activities
Cash flows from (used for) financing activities:
Cash from sale of common stock Cash from sale of common stock Cash received from sale of land Decrease in accounts payable Depreciation	$
Cash used for dividends Cash used for dividends Cash received from sale of land Decrease in inventories Increase in accounts receivable
Net cash flow from financing activities
Increase in cash Decrease in cash Increase in cash		$
Cash at the beginning of the year
Cash at the end of the year		$

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b. Was Olson-Jones Industries Inc.s net cash flow from operations more or less than net income?

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