Question

Land 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, 20Y2 Dec 31, 2011 Assets Cash $143 $47 Accounts receivable (net) Inventories 117 Equipment Accumulated depreciation equipment Total Assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $10 par Pald-in capital: Excess of issue price over par--common stock Retained earnings Total liabilities and stockholders' equity The following additional information is taken from the records: 1. Land was sold for $40. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year 4. The common stock was issued for cash. 5. There was a $95 credit to Retained Earnings for net income. 6. There was a $29 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

Answer 1

	Cash Flow Statement
	For the Year Ended December 31st,20Y2
	Cash Flows from Operating Activities
	Net Income			$              95.00
	Depreciation Expense($18-$9)		$                                      9.00
	Profit on sale of Land		$                                  (24.00)
	Increase in accounts Receivable($82-$59)		$                                  (23.00)
	Increase in Inventories($51-$32)		$                                  (19.00)
	Increase in Accounts Payable($56-$47)		$                                      9.00
				$            (48.00)
	Net Cash provided by operating activities=(A)			$              47.00
	Cash flows from Investing Activities
	Sale of Land		$                                    40.00
	Purchase of equipment($66-$51)		$                                  (15.00)
	Net Cash provided by Investing Activities=(B)			$              25.00
	Cash Flow from financing activities
	Issue of common stock including paid in capital($29+$67)-($15+$37)		$                                    44.00
*	Dividend paid		$                                  (20.00)
	Net Cash from financing activites=(C )			$              24.00
	Net Increase in cash=(A)+(B)+(C )			$              96.00
	Cash 1,Jan 20Y2			$              47.00
	Cash 31st December 20Y2			$            143.00
	Land Account
	Particular	Amt	Particular	Amt
	Beginning Balance	133	By Bank	40
	Profit on sale of land	24	By Balance C/d	117
	Total	157	Total	157
*	$29 cash dividend declared, but $9 stands in the liabilites side of balance sheet, it means $20 paid for dividend.