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, Dec. 31, 20Y2 20Y1 Assets Cash $164 $54 Accounts receivable (net) 94 67 Inventories 59 37 Land 134 152 Equipment 75 59 Accumulated depreciation-equipment (20) (10) $506 $359 Total Assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $64 $54 Dividends payable 10 Common stock, $1 par 33 17 Paid-in capital: Excess of issue price over par- 77 42 common stock Retained earnings 322 246 $506 $359 Total liabilities and stockholders' equity The following additional information is taken from the records: 1. Land was sold for $45 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 $109 credit to Retained Earnings for net income. 6. There was a $33 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. 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow from investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year b. Was Olson-Jones Industries Inc.'s net cash flow from operations more or less than net income?
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, Dec. 31, 20Y2 20Y1 Assets Cash $164 $54 Accounts receivable (net) 94 67 Inventories 59 37 Land 134 152 Equipment 75 59 Accumulated depreciation-equipment (20) (10) $506 $359 Total Assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $64 $54 Dividends payable 10 Common stock, $1 par 33 17 Paid-in capital: Excess of issue price over par- 77 42 common stock Retained earnings 322 246 $506 $359 Total liabilities and stockholders' equity The following additional information is taken from the records: 1. Land was sold for $45 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 $109 credit to Retained Earnings for net income. 6. There was a $33 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. 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: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow from investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year b. Was Olson-Jones Industries Inc.'s net cash flow from operations more or less than net income?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 1PA
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Transcribed Image Text: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,
Dec. 31,
20Y2
20Y1
Assets
Cash
$164
$54
Accounts receivable (net)
94
67
Inventories
59
37
Land
134
152
Equipment
75
59
Accumulated depreciation-equipment
(20)
(10)
$506
$359
Total Assets
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
$64
$54
Dividends payable
10
Common stock, $1 par
33
17
Paid-in capital: Excess of issue price over par-
77
42
common stock
Retained earnings
322
246
$506
$359
Total liabilities and stockholders' equity
The following additional information is taken from the records:
1. Land was sold for $45
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 $109 credit to Retained Earnings for net income.
6. There was a $33 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.
Transcribed Image Text: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:
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Net cash flow from investing activities
Cash flows from (used for) financing activities:
Net cash flow from financing activities
Cash at the beginning of the year
Cash at the end of the year
b. Was Olson-Jones Industries Inc.'s net cash flow from operations more or less than net income?
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