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Statement of Cash Flows-Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 2041, is as follows: Dec. 31, Dec.

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Statement of Cash Flows-Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 2041, is as follows: Dec. 31, Dec. 31, 2012 2011 Assets Cash $107 $34 Accounts receivable (net) 61 43 Inventories 38 23 Land 87 97 49 37 Equipment Accumulated depreciation-equipment (13) (7) Total Assets $329 $227 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable $41 $34 7 Common stock, $1 par 22 11 Pald-in capital: Excess of issue price over par- common stock 55 27 Retained earnings 204 155 Total liabilities and stockholders' equity $329 $227 The following additional information is taken from the records: W 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, 2012 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation X Gain on sale of land KA Changes in current operating assets and liabilities: Increase in accounts receivable > 71 7 -13 -18 -12 25 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 v 13 -15 61 46 Net cash flow from financing activities Increase in cash Cash at the beginning of the year 98 14 UUS Cash at the end of the year 132 CAVOU

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