Question
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
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 | $183 | $14 | |||
| Accounts receivable (net) | 55 | 49 | |||
| Inventories | 117 | 99 | |||
| Land | 250 | 330 | |||
| Equipment | 205 | 175 | |||
| Accumulated depreciationequipment | (68) | (42) | |||
| Total assets | $742 | $625 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable (merchandise creditors) | $51 | $37 | |||
| Dividends payable | 5 | - | |||
| Common stock, $1 par | 125 | 80 | |||
| Paid-in capital in excess of parcommon stock | 85 | 70 | |||
| Retained earnings | 476 | 438 | |||
| Total liabilities and stockholders' equity | $742 | $625 | |||
The following additional information is taken from the records:
- Land was sold for $120.
- Equipment was acquired for cash.
- There were no disposals of equipment during the year.
- The common stock was issued for cash.
- There was a $62 credit to Retained Earnings for net income.
- 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 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 (used for) 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: | ||
| Increase in accounts receivable | ||
| Increase in inventories | ||
| Increase in accounts payable | ||
| Net cash flow from operating activities | $ | |
| Cash flows from (used for) investing activities: | ||
| Cash received from sale of land | $ | |
| Cash paid for purchase of equipment | ||
| Net cash flow from investing activities | ||
| Cash flows from (used for) financing activities: | ||
| Cash received from sale of common stock | $ | |
| Cash paid for dividends | ||
| Net cash flow from financing activities | ||
| Net increase in cash | $ | |
| Cash balance, January 1, 20Y2 | ||
| Cash balance, December 31, 20Y2 | $ | |
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Cost And Management Accounting An Introduction
Authors: Colin Drury
5th Edition
1861529058, 978-1861529053
