Statement of Cash FlowsIndirect 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		$205		$64
Accounts receivable (net)		117		81
Inventories		73		44
Land		167		183
Equipment		94		70
Accumulated depreciation-equipment		(25)		(13)
	Total Assets	$631		$429
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$80		$64
Dividends payable		13		-
Common stock, $1 par		42		20
Paid-in capital: Excess of issue price over parcommon stock		107		50
Retained earnings		389		295
	Total liabilities and stockholders' equity	$631		$429

The following additional information is taken from the records:

Land was sold for $40.

Equipment was acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $136 credit to Retained Earnings for net income.

There was a $42 debit to Retained Earnings for cash dividends declared

Question Content Area

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:
Cash received from sale of common stockDecrease in accounts receivableIncrease in inventoriesNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Decrease in accounts receivableDepreciationIncrease in accounts receivableLoss on sale of landDepreciation	Depreciation
Decrease in inventoriesGain on sale of landIncrease in accounts payableLoss on sale of landGain on sale of land	Gain on sale of land
Changes in current operating assets and liabilities:
Decrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivableIncrease in accounts receivable	Increase in accounts receivable
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in inventoriesIncrease in inventories	Increase in inventories
Cash paid for dividendsDecrease in accounts payableDepreciationIncrease in accounts payableIncrease in accounts payable	Increase in accounts payable
Net cash flow from operating activities		$fill in the blank c825dcff4fca054_13
Cash flows from (used for) investing activities:
Cash paid for dividendsCash from sale of landDepreciationGain on sale of landCash from sale of land	$Cash from sale of land
Cash used for purchase of equipmentCash received from sale of common stockDepreciationIncrease in inventoriesCash used for purchase of equipment	Cash used for purchase of equipment
Net cash flow from investing activities		fill in the blank c825dcff4fca054_18
Cash flows from (used for) financing activities:
Cash from sale of common stockCash received from sale of landDecrease in accounts payableDepreciationCash from sale of common stock	$Cash from sale of common stock
Cash used for dividendsCash received from sale of landDecrease in inventoriesIncrease in accounts receivableCash used for dividends	Cash used for dividends
Net cash flow from financing activities		fill in the blank c825dcff4fca054_23
Decrease in cashIncrease in cash		$- Select -
Cash at the beginning of the year		fill in the blank c825dcff4fca054_26
Cash at the end of the year		$fill in the blank c825dcff4fca054_27

Question Content Area

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