Statement of Cash Flows-Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, Assets Cash Accounts receivable (net) Inventories Land Equipment Accumulated depreciation-equipment Total Assets 20Y2 $112 63 40 91 51 (14) $343 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Paid-in capital: Excess of issue price over par- common stock Retained earnings Total liabilities and stockholders' equity The following additional information is taken from the records: $43 7 23 57 213 $343 Dec. 31, 20Y1 $36 45 24 100 39 (7) $237 $36 11 28 162 $237 Total liabilities and stockholders' equity The following additional information is taken from the records: 1. Land was sold for $23. 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 $74 credit to Retained Earnings for net income. 6. There was a $23 debit to Retained Earnings for cash dividends declared. $343 $237 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 negative adjustments. Cash flows from operating activities: Olson-Jones Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 < For the Year Ended December 31, 20Y2 Cash flows from operating activities: Net income 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: Net cash flow from investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year 74 Statement of Cash Flows-Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, Assets Cash Accounts receivable (net) Inventories Land Equipment Accumulated depreciation-equipment Total Assets 20Y2 $112 63 40 91 51 (14) $343 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Paid-in capital: Excess of issue price over par- common stock Retained earnings Total liabilities and stockholders' equity The following additional information is taken from the records: $43 7 23 57 213 $343 Dec. 31, 20Y1 $36 45 24 100 39 (7) $237 $36 11 28 162 $237 Total liabilities and stockholders' equity The following additional information is taken from the records: 1. Land was sold for $23. 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 $74 credit to Retained Earnings for net income. 6. There was a $23 debit to Retained Earnings for cash dividends declared. $343 $237 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 negative adjustments. Cash flows from operating activities: Olson-Jones Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 < For the Year Ended December 31, 20Y2 Cash flows from operating activities: Net income 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: Net cash flow from investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year 74