Question

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

Answer 1

Answer:

Olson- Jones Industries Inc.
Statement of cash flows
For year ended December 31 20Y2
	Amount($)	Amount($)
A. Cash Flows from Operating Activity
Net Income	96
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation expense	9
Gain on sale of Land(30-12)	-18
Changes in Current operating assets and liabilities
Increase in Accounts receivables(58-83)	-25
Increase in Inventories(32-52)	-20
Increase in Accounts Payable(56-46)	10
Net cash flow from Operating activities		52
B. Cash flows from Investing Activities
Sale of land	30
Purchase of Equipment	-16
Net Cash flows from Investing activities		14
C. Cash Flows from Financing activities
Issuance of Common Stock(30+74-14-36)	54
Payments of dividends(30-9)	-21
Cash flows from Financing activities		33
Net Increase (Decrease) in Cash [A+B+C]		99
Cash at the beginning		46
Cash at the end		145
Requirement 2
Net Cash flow from operations is less than net income
ie. 96-52= $44