Question
The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: The following additional information is taken from the
The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:
The following additional information is taken from the records:
Land was sold for $43.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $93 credit to Retained Earnings for net income.
There was a $29 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.
What are the answers for the two boxes with red X's next to them? Why are the values for the net cash flow from operating activities and change in cash wrong?
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, 20Y2 Dec. 31, 20Y1 Assets Cash Accounts receivable (net) Inventories Land Equipment Accumulated depreciation-equipment $141 80 50 115 65 (17) $434 $47 59 32 132 51 $312 Total Assets Liabilities and Stockholders' Equity $55 $47 Accounts payable (merchandise creditors) Dividends payable C mmon stock, $10 ar Paid-in capital: Excess of issue price over par-common stock Retained earnings 29 64 277 $434 15 37 213 $312 Total liabilities and stockholders' equity The following additional information is taken from the records: For the Year Ended December 31, 20Y2 Cash flows from operating activities Net income 93 Adjustments to reconcile net income to net cash flow from operating activities Depreciation 8 Gain on sale of land 26 Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventories Increase in accounts payable 21 18 V 8 Net cash flow from operating activities Cash flows from investing activities 31 X Cash received from sale of land 43 Cash paid for purchase of equipment 14V 29 Net cash flow provided by investing activities Cash flows from financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow provided by financing activities Change in cash Cash at the beginning of the year Cash at the end of the year 20 21 19 X 47Step by Step Solution
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