50.1K

Verified Solution

Link Copied!

Statement of Cash Flows-Indirect Method The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 2012 and 2041, is as follows: Dec 31, 2012 Dec. 31, 2011 Assets Cash $200 $66 Accounts receivable (net) 114 82 Inventories 71 45 Land 163 185 Equipment 92 72 Accumulated depreciation-equipment (25) (13) Total Assets $615 $437 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $77 $66 Dividends payable 12 Common stock, $1 par 41 21 Paid-in capitalt Excess of issue price over par- 95 51 common stock Retained earnings 390 299 Total liabilities and stockholders' equity $615 $437 The following additional information is taken from the records: 1. Land was sold for $55. 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 $132 credit to Retained Earnings for net income. 6. There was a $41 debit to Retained Earnings for cash dividends declared. 2. Prepare a statement of cash flows using the Indirect method of presenting cash flows from operating activities. Use the minussion to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Ohon Jones Industries Inc. Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities Adjustments to reconcile net income to net cash flow from operating activities Changes in current sperating assets and be 0 0 0 I DO Net cash flow from operating activities Cash flows from (used for investing activities Niet 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 Olondones Industries in cash flow from operations one of than net income

Answer & Explanation Solved by verified expert

See Answer