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		$156		$51
Accounts receivable (net)		89		64
Inventories		56		35
Land		127		146
Equipment		72		56
Accumulated depreciation-equipment		(19)		(10)
	Total Assets	$481		$342
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$61		$51
Dividends payable		10		-
Common stock, $10 par		32		16
Paid-in capital: Excess of issue price over parcommon stock		72		40
Retained earnings		306		235
	Total liabilities and stockholders' equity	$481		$342

The following additional information is taken from the records:

1. Land was sold for $48.
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 $103 credit to Retained Earnings for net income.
6. There was a $32 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	$
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation
Gain on sale of land
Changes in current operating assets and liabilities:
Net cash flow from operating activities		$.
Cash flows from investing activities:
	$
Net cash flow provided by investing activities
Cash flows from financing activities:
	$
Net cash flow provided by financing activities
		$
Cash at the beginning of the year		$
Cash at the end of the year		$

b. Was Olson-Joness net cash flow from operations more or less than net income?

The source(s) of the difference are:

1. Gain on the sale of land
2. Purchase of equipment
3. Sale of common stock
4. Changes in current operating assets and liabilities
5. Depreciation expense
6. Dividends paid