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 $201 $66 Accounts receivable (net) 113 83 Inventories 71 45 Land 162 188 Equipment 91 72 Accumulated depreciation-equipment (25) (13) Total Assets $613 $441 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $77 $66 Dividends payable 12 - Common stock, $1 par 40 21 Paid-in capital: Excess of issue price over par—common stock 90 52 Retained earnings 394 302 Total liabilities and stockholders' equity $613 $441 The following additional information is taken from the records: Land was sold for $65. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $132 credit to Retained Earnings for net income. There was a $40 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.
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 $201 $66 Accounts receivable (net) 113 83 Inventories 71 45 Land 162 188 Equipment 91 72 Accumulated depreciation-equipment (25) (13) Total Assets $613 $441 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $77 $66 Dividends payable 12 - Common stock, $1 par 40 21 Paid-in capital: Excess of issue price over par—common stock 90 52 Retained earnings 394 302 Total liabilities and stockholders' equity $613 $441 The following additional information is taken from the records: Land was sold for $65. Equipment was acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $132 credit to Retained Earnings for net income. There was a $40 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.
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 1PB
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Question
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 | $201 | $66 | |||
Accounts receivable (net) | 113 | 83 | |||
Inventories | 71 | 45 | |||
Land | 162 | 188 | |||
Equipment | 91 | 72 | |||
(25) | (13) | ||||
Total Assets | $613 | $441 | |||
Liabilities and |
|||||
Accounts payable (merchandise creditors) | $77 | $66 | |||
Dividends payable | 12 | - | |||
Common stock, $1 par | 40 | 21 | |||
Paid-in capital: Excess of issue price over par—common stock | 90 | 52 | |||
Retained earnings | 394 | 302 | |||
Total liabilities and stockholders' equity | $613 | $441 |
The following additional information is taken from the records:
- Land was sold for $65.
- Equipment was acquired for cash.
- There were no disposals of equipment during the year.
- The common stock was issued for cash.
- There was a $132 credit to Retained Earnings for net income.
- There was a $40 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.
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