Question

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, 20Y1 Assets Cash $128 Accounts receivable (net) Inventories Land Equipment Accumulated depreciation-equipment (16) Total Assets $395 $269 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 244 Total liabilities and stockholders' equity $395 The following additional information is taken from the records: 185 $269

Answer 1

Cash Flow Statement
Indirect Method
Cash flow from Operating Activities
Net Income		$        64,950.00
Adjustments
Depreciation	$      7,110.00			=65110-58000
Loss on sale of Investments	$      9,420.00			=94250-84830
Change In current assets & Liabilities
Increase in Accounts Receivable	$ 7,130.00			=82170-89300
Increase in inventories	$ 8,800.00			=243270-252070
Increase in Accounts payable	$      9,670.00			=168360-158690
Decrease in Accrued Expenses Payable	$ 4,200.00			=16740-20940
Total Adjustments		$          6,070.00
Cash from operating activities			$        71,020.00
Cash flow from Investing Activities
Sale of Investment		$        84,830.00
Cash used for Purchase of Land		$ 1,29,300.00		=0-129300
Cash used for Purchase of Equipment		$ 63,050.00		=215080-278130
Net Cash Flow used for investing activities			$ 1,07,520.00
Cash flow from Financing Activities
Issue of stock		$        90,040.00		=50230-39470+188830-109550
Cash used for Dividends		$ 35,810.00		=-(37860+7250-9300)
Cash from financing activities			$        54,230.00
Net Increase in cash			$        17,730.00
Opening Balance of Cash			$     2,28,770.00
Closing Balance of Cash			$     2,46,500.00