Question

SHOW Me How Calculator The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 2041, is as follows: Dec 31, 2012 Dec. 31, 2041 Assets Cash $489.00 $163.00 4 Accounts receivable (net) 283.00 205.00 5 Inventories 180.00 111.00 6 Land 449.00 7 Equipment 396.00 228.00 (56.00) 179.00 8 Accumulated depreciation equipment Total assets (31.00) $1,076.00 $1,520.00 Liabilities and Stockholders'Equity 11 Accounts payable (merchandise creditors) $171.00 $162.00 12 Dividends payable 30.00 105.00 48.00 13 Common stock, $1 par 14 Paid-in capital: Excess of issue price over par-common stock 248.00 127.00 15 Retained earnings 966.00 739.00 16 Total liabilities and stockholders' equity $1,520.00 $1,076.00

Answer 1

Olson-Jones Industries Inc. Statement of Cash Flows For the Year Ended December 31, 20Y2 Calculation Cash flows from operating activities: Net income 324 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 25 =56-31 Gain on the sale of land (77) =(449-396)-130 Changes in current operating assets and liabilities: Increase in accounts receivable (78) =205-283 Increase in inventories (69) =111-180 Increase in accounts payable 9 =171-162 Net cash flow from operating activities 134 Increase in current asset decreases cash Increase in current liabilities increases cash Cash flows from (used for) investing activities: Cash from sale of land Cash used for purchase of equipment Net cash flow from investing activities 130 (49) =179-228 81 Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Net cash flow from financing activities 178 =(105+248)-(48+127) (67) =30-97 111 Increase in cash Cash at the beginning of the year Cash at the end of the year 326 163 489 Was the net cash flow from operations for Olson-Jones Industries Inc. more or less than net income? What is the source of this difference? Less than net income Source of difference are below: Depreciation expense Changes in current operating assets and liabilities Gain on the sale of land