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:
A. Land was sold for $120.
B. Equipment was acquired for cash.
C. There were no disposals of equipment during the year.
D. The common stock was issued for cash.
E. There was a $62 credit to Retained Earnings for net income.
F. 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.
B. Was Olson-Jones's net cash flow from operations more or less than net income? What is the source of this difference?

Transcribed Image Text:

Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 14 49 $183 . . . . 250 205 (68) $742 330 175 (42) $625 Total assets Liabilities and Stockholders Equity 51 $ 37 125 85 476 $742 80 70 438 $625 Paid-in capital: Excess of issue price over par-common stock....