Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Statement of Cash Flows-Indirect Method The comparative balance sheet of Olson Jones Industries Inc. for December 31, 2012 and 2041, is as follows: Dec 31,

image text in transcribed
image text in transcribed
image text in transcribed
Statement of Cash Flows-Indirect Method The comparative balance sheet of Olson Jones Industries Inc. for December 31, 2012 and 2041, is as follows: Dec 31, 2012 Dec 31, 2011 Assets Cash $183 $14 Accounts receivable (net) 55 49 Inventories 117 99 Land 250 330 Equipment 205 75 Accumulated depreciation-equipment (68) (42) $742 $625 $51 $37 Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, 51 par Pald-in capital in excess of par--common stock Retained earnings 5 125 80 85 70 476 438 Total liabilities and stockholders' equity $742 $625 The following additional information is taken from the records: a, Land was sold for $120. b. Equipment was acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $62 credit to Retained Earnings for net income. f. There was a $24 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect method of presenting Cash Mows from operating activities. Use the minus sign to 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 (used for) operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: 0 0 Net cash flow from investing activities Net cash flow from investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash balance, January 1, 2012 Cash balance, December 31, 2012 OLDO b. Was Olson-Jones's net cash flow from operations more or less than net income? The source(s) of the difference are . Gain on the sale of land b. Purchase of equipment C. Sale of common stock d. Changes in current operating assets and liabilities e. Depreciation expense 1. Dividends pald

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Report Chavarria Dinne And Lamey LLC Contract Deliverables Office Of Inspector U.S Department Of The Interior

Authors: United States Department Of The Interior

1st Edition

1511678526, 978-1511678520

More Books

Students also viewed these Accounting questions