Answer this question fully and follow the table
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 | $183 | $14 | |||
Accounts receivable (net) | 55 | 49 | |||
Inventories | 117 | 99 | |||
Land | 250 | 330 | |||
Equipment | 205 | 175 | |||
Accumulated depreciation—equipment | (68) | (42) | |||
Total assets | $742 | $625 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $51 | $37 | |||
Dividends payable | 5 | - | |||
Common stock, $1 par | 125 | 80 | |||
Paid-in capital in excess of par—common stock | 85 | 70 | |||
Retained earnings | 476 | 438 | |||
Total liabilities and stockholders' equity | $742 | $625 |
The following additional information is taken from the records:
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 (used for) operating activities: | ||
Net income | $ | |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Depreciation | ||
Gain on sale of land | ||
Changes in current operating assets and liabilities: | ||
Increase in accounts receivable | ||
Increase in inventories | ||
Increase in accounts payable | ||
Net cash flow from operating activities | $ | |
Cash flows from (used for) investing activities: | ||
Cash received from sale of land | $ | |
Cash paid for purchase of equipment | ||
Net cash flow from investing activities | ||
Cash flows from (used for) financing activities: | ||
Cash received from sale of common stock | $ | |
Cash paid for dividends |
Olson Jones Industries, Inc. | ||
Statement of cash flows | ||
For the year ended December 31,20Y2 | ||
Cash flows from (used for) operating activities: | ||
Net Income | $ 62 | |
Adjustments to net income to net cash flow from operating activities: | ||
Depreciation | $ 26 | |
Gain on sale of land (120-80) | $ -40 | |
Changes in current operating assets and liabilities: | ||
Increase in accounts receivable | $ -6 | |
Increase in inventories | $ -18 | |
Increase in accounts payable | $ 14 | |
Net cash flow from operating activities | $ 38 | |
Cash flows from (used for) investing activities: | ||
Cash received from sale of land | $ 120 | |
Cash paid for purchase of equipment | $ -30 | |
Net cash flow from investing activities | $ 90 | |
Cash flows from (used for) financing activities: | ||
Cash received from sale of common stock | $ 60 | |
Cash paid for dividend | $ -19 | |
Cash flows from financing activities | $ 41 | |
Total cash generated | $ 169 | |
Opening cash balance | $ 14 | |
Ending cash balance | $ 183 |
Workings:
Gain on sale of land: | |
Opening land | $ 330 |
Closing land | $ 250 |
Book value of land sold | $ 80 |
Sale value of land | $ 120 |
Gain on sale of land (120-80) | $ 40 |
Depreciation | |
Closing accumulated depreciation | $ 68 |
Opening accumulated depreciation | $ 42 |
Depreciation | $ 26 |
Purchase of equipment | |
Closing accumulated depreciation | $ 205 |
Opening accumulated depreciation | $ 175 |
Purchase of equipment | $ 30 |
Dividend paid | |
Dividend declared from retained earnings | $ 24 |
Less: dividend payable | $ 5 |
Paid | $ 19 |
Cash received from sale of shares | |
Change in par value of stock (125-80) | $ 45 |
Change in additional paid up capital (85-70) | $ 15 |
$ 60 |
Answer this question fully and follow the table The comparative balance sheet of Olson-Jones Industries Inc....
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 $183 $14 Accounts receivable (net) 55 49 Inventories 117 99 Land 250 330 Equipment 205 175 Accumulated depreciation—equipment (68) (42) Total assets $742 $625 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $51 $37 Dividends payable 5 - Common stock, $1 par 125 80 Paid-in capital in excess of par—common...
the comparative balance sheet of Olson- Jones industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Assets. dec. 31, 20Y2. dec. 31, 20Y1 cash. $183. $14. Accounts receivable (net) 55. 49. inventories. 117. 99. land. 250. 330. equipment. 205. 175. accumulated depreciation. (68) (42) total Assets. $742. $625. liabilities and stockholders equity. Accounts payable. $51. $37. dividends payable. 5. - common stock, $1 par. 125. 80. paid in capital excess of issue. 85. 70. par- common stock. retained...
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 $165 $53 Accounts receivable (net) 94 66 Inventories 59 36 Land 135 148 Equipment 76 58 Accumulated depreciation-equipment (20) (10) Total Assets $509 $351 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $64 $53 Dividends payable 10 - Common stock, $1 par 34 16 Paid-in capital: Excess of issue price over par—common stock 85 41...
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 $186 $59 Accounts receivable (net) 106 74 Inventories 66 41 Land 152 168 Equipment 85 65 Accumulated depreciation-equipment (23) (12) Total Assets $572 $395 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $72 $59 Dividends payable 11 - Common stock, $1 par 38 19 Paid-in capital: Excess of issue price over par—common stock 95 46...
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 $136 $44 Accounts receivable (net) 78 55 Inventories 49 30 Land 112 127 Equipment 63 48 Accumulated depreciation-equipment (17) (9) Total Assets $421 $295 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $53 $44 Dividends payable 8 - Common stock, $1 par 28 14 Paid-in capital: Excess of issue price...
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 $192 $61 Accounts receivable (net) 109 76 Inventories 68 42 Land 156 172 Equipment 88 67 Accumulated depreciation-equipment (24) (12) Total Assets $589 $406 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $74 $61 Dividends payable 12 - Common stock, $10 par 39 19 Paid-in capital: Excess of issue price...
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 $203 $65 Accounts receivable (net) 116 81 Inventories 73 44 Land 166 184 Equipment 93 71 Accumulated depreciation-equipment (25) (13) Total Assets $626 $432 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $79 $65 Dividends payable 13 - Common stock, $10 par 41 20 Paid-in capital: Excess of issue price...
tatement 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 $203 $66 Accounts receivable (net) 115 83 Inventories 72 46 Land 165 188 Equipment 93 72 Accumulated depreciation-equipment (25) (13) Total Assets $623 $442 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $78 $66 Dividends payable 12 - Common stock, $10 par 41 21 Paid-in capital: Excess of issue price...
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 $185 $60 Accounts receivable (net) 105 75 Inventories 66 41 Land 151 169 Equipment 85 65 Accumulated depreciation-equipment (23) (12) Total Assets $569 $398 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $72 $60 Dividends payable 11 - Common stock, $1 par 38 19 Paid-in capital: Excess of issue price...
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 $183 o Accounts receivable (net) Inventories o Land 250 o on (68) $742 (42) $625 Equipment Accumulated depreciation equipment 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 u un u...