Statement of Cash FlowsIndirect Method The comparative balan

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 $209 118 74 170 95 (26) $640 $65 82 45 185 71 (13) $435 Total Assets Liabilities and Stockholders\' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Paid-in capital: Excess of issue price over par- common stock Retained earnings $81 13 42 $65 20 109 51 395 299 Total liabilities and stockholders\' equity $640 $435

Solution

Cash Flow Statement is as prepared below:

Olson-Jones Industries Inc net cash flow from operations is less than net Income.

Olson-Jones Industries Inc.
Statement of Cash Flows
For the Year Ended December 31,20Y2
Cash Flows From Operating Activities
Net Income (Given)		138
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Depreciation Expense	13
Gain on sale of land (38- (185-170)	-23
Increase in Accounts Receivable (118-82)	-36
Increase in Inventories (74-45)	-29
Increase in accounts payable (81-65)	16
		-59
Net Cash Provided by Operating Activities		79
Cash Flows From Investing Activities
Purchase of Equipment	-24
Sale of Land	38
Net Cash Provided by Investing Activities		14
Cash Flows From Financing Activites
Common Stock issued	80
Payments of Cash Dividends	-29
Net Cash Used by Financing Activities		51
Net Increase in Cash		144
Cash at Beginning of the Year		65
Cash at end of Year		209