Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: 1 Dec. 31, 20Y2 Dec. 31, 20Y1 2

The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

1

Dec. 31, 20Y2

Dec. 31, 20Y1

2

Assets

3

Cash

$183.00

$14.00

4

Accounts receivable (net)

55.00

49.00

5

Inventories

117.00

99.00

6

Land

250.00

330.00

7

Equipment

205.00

175.00

8

Accumulated depreciation-equipment

(68.00)

(42.00)

9

Total assets

$742.00

$625.00

10

Liabilities and Stockholders Equity

11

Accounts payable (merchandise creditors)

$51.00

$37.00

12

Dividends payable

5.00

13

Common stock, $1 par

125.00

80.00

14

Paid-in capital: Excess of issue price over parcommon stock

85.00

70.00

15

Retained earnings

476.00

438.00

16

Total liabilities and stockholders equity

$742.00

$625.00

The following additional information is taken from the records:

1. Land was sold for $120.
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 $62 credit to Retained Earnings for net income.
6. There was an $24 debit to Retained Earnings for cash dividends declared.

Required:

A. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.
B. Was the net cash flow from operations for Olson-Jones Industries Inc. more or less than net income? What is the source of this difference?

Score: 145/154

Olson-Jones Industries Inc.

Statement of Cash Flows

1

Cash flows from operating activities:

2

3

Adjustments to reconcile net income to net cash flow from operating activities:

4

5

6

Changes in current operating assets and liabilities:

7

8

9

10

11

Cash flows from (used for) investing activities:

12

13

14

15

Cash flows from (used for) financing activities:

16

17

18

19

20

Cash at the beginning of the year

21

Cash at the end of the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE International Accounting

Authors: Timothy Doupnik, Mark Finn, Giorgio Gotti, Hector Perera

5th Edition

1260547981, 9781260547986

More Books

Students also viewed these Accounting questions

Question

2. Be sure to make eye contact with the students.

Answered: 1 week ago

Question

2.1 Explain how employment-related issues are governed in Canada.

Answered: 1 week ago

Question

2.3 Describe the requirements for reasonable accommodation.

Answered: 1 week ago