Statement of Cash Flows-Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 2012 and 20Y1, is as follows: Assets Dec. 31, Dec. 31, 20Y2 20Y1 Cash $107 $35 Accounts receivable (net) 62 44 Inventories 39 24 Land 89 100 Equipment 50 38 Accumulated depreciation-equipment (13) (7) Total Assets $334 $234 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $42 $35 Dividends payable 7 Common stock, $1 par 22 11 Paid-in capital: Excess of issue price over par- 52 27 common stock Retained earnings 211 161 Total liabilities and stockholders' equity $334 $234 The following additional information is taken from the records: 1. Land was sold for $28. 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 $72 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 62 X Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 26 X Gain on sale of land -40 X Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: -6 X -18 X 14 X 38 X Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: 14 X 38 X Cash paid for dividends 120 X Cash received from sale of common stock x -30 X Net cash flow from investing activities 90 X Cash flows from (used for) financing activities: Cash from sale of common stock Cash received from sale of land x Net cash flow from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year -19 X 60 X 41 X 169 X 14 X 183 X