Solution: | ||
A) | ||
Olson-Jones Industries Inc | ||
Statement of Cash Flows for the year ended December 31, 20Y2 | ||
Cash Flows from operating activities: | ||
Net income | $ 299.00 | |
Adjustment to reconcile net income to net cash flow from operating activities: | ||
Add:Depreciation ($60-$27) | $ 33.00 | |
Less: Gain on sale of land | $ (67.00) | |
Changes in Current operating assets and liabilities: | ||
Increase in accounts receivable ($195-$280) | $ (85.00) | |
Increase in Inventory ($110-$172) | $ (62.00) | |
Increase in accounts payable ($180-$161) | $ 19.00 | |
Net cash flow from operating activities | $ 137.00 | |
Cash Flows from Investing Activities: | ||
Cash Received from sale of land | $ 120.00 | |
Less: Cash paid for purchase of equipment (172-223) | $ (51.00) | |
Net cash from Investing Activities: | $ 69.00 | |
Cash Flows from Financing Activities: | ||
Cash Received from sale of common stock ($105-45) | $ 60.00 | |
Paid in capital ($247-$121) | $ 126.00 | |
Less:Cash paid for dividends | $ (64.00) | |
Net Cash from Financing Activities: | $ 122.00 | |
Increase in Cash | $ 328.00 | |
Cash at the beginning of the year | $ 158.00 | |
Cash at the end of the year | $ 486.00 | |
Workings: | ||
Calculation of gain/loss on sale of land | ||
Opening bal land | $ 453.00 | |
Closing bal land | $ (400.00) | |
Book value of land | $ 53.00 | |
Sale value of land | $ 120.00 | |
Profit on sale of land ($120-$53) | $ 67.00 | |
Dividends: | ||
Dividends debited to retained earnings | $ 96.00 | |
Less:Dividends payable | $ (32.00) | |
Dividends paid | $ 64.00 | |
B) | ||
Net income | $299 | |
Net cash flow from operation | ($137) | |
$162 | ||
Net income is higher than cash flow from operations | ||
Source of this difference : | ||
Add:Depreciation (Non cash expense , therefore added back | $ 33.00 | |
Less: Gain on sale of land (Gain on sale is not a business activity, therefore added back) | $ (67.00) | |
Changes in Current operating assets and liabilities: | ||
Increase in accounts receivable (cash not received from accounts receivable, therefore increase is deducted) | $ (85.00) | |
Increase in Inventory ($110-$172) (cash blocked in purchase of inventory) | $ (62.00) | |
Increase in accounts payable ($180-$161) (Cash not paid to accounts payable) | $ 19.00 | |
Source of this difference | $ (162.00) | |
The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 2012 and 2041, is as...
The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 2041, is as follows: Dec. 31, Dec. 31, 2011 204 Assets Cash Accounts receivable (net) Inventories Land (13) $315 $315 $217 $217 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 Total liabilities and stockholders' equity $315 $217 The following additional information is taken from...
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 2041, is as follows: Dec. 31, Dec. 31, 2012 2011 Assets $155 Cash Accounts receivable (net) Inventories U Land Equipment Accumulated depreciation equipment (19) (10) Total Assets $476 $343 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 236 307 $476 Total liabilities and stockholders'...
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...
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, 20Y1 Assets Cash Accounts receivable (net) Inventories Land Equipment 175 (42) Accumulated depreciation-equipment Total assets $625 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Pald-in capital: Excess of issue price over par- common stock Retained earnings Total liabilities and stockholders' equity 742 5625 The following additional information...
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, Dec. 31, 2011 Assets 2012 Cash $145 Accounts receivable (net) Inventories Land Equipment Accumulated depreciation equipment (18) 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 Total liabilities and stockholders equity Total liabilities and stockholders' equity...
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 $114 $36 Accounts receivable (net) 65 45 Inventories 41 25 Land 94 102 Equipment 53 39 Accumulated depreciation-equipment (14) (7) Total Assets $353 $240 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $44 $36 Dividends payable 7 - Common stock, $1 par 23 11 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 $193 $62 Accounts receivable (net) 110 77 Inventories 69 42 Land 158 175 Equipment 89 67 Accumulated depreciation-equipment (24) (12) Total Assets $595 $411 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $75 $62 Dividends payable 12 - Common stock, $1 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 $197 $65 Accounts receivable (net) 113 81 Inventories 71 44 Land 161 183 Equipment 91 71 Accumulated depreciation-equipment (24) (12) Total Assets $609 $432 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $77 $65 Dividends payable 12 - Common stock, $1 par 40 20 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 $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...