Statement of Cash Flows-Indirect Method The comparative balance sheet of olson-J

Question

Statement of Cash Flows-Indirect Method The comparative balance sheet of olson-Jones Industries Inc. for December 31, 20Y2 and 2071, is as follows; pec. 31? 2072 Dec. 31, 2071 Assets Cash $125 Accounts receivable (net? Inventories Land Equipment Accumulated depreciation-equipment ?15? $383 Total Assets $276 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 247 190 Total liabilities and stockholders' equity $383 $276 The following additional information is taken from the records:

Explanation / Answer

Statement of Cash Flows Amount in $ Amount in $ Net income $                      82 Cash flows from operating activities Adjustments for: Depreciation $                       -   Gain on sale of land $                    -26 (Increase) / Decrease in Account receivables $                    -19 Inventory Decrease / (Increase) $                    -16 Accounts payable Increase / ( Decrese) $                        7 Wages Payable Prepaid Expenses income tax payable $                    -54 Net cash from operating activities $                      28 Cash flows from investing activities Sale of Lans $                      43 Purchase of Equipment $                      -5 Net cash used in investing activities $                      38 Cash flows from Financing activities Issue of Common Stock $                      35 Dividend Paid $                    -17 Note Payable Net cash used in financing activities $                      18 Net increase in cash and cash equivalents $                      84 Add :Cash and cash equivalents at beginning of period $                      41 Cash and cash equivalents at end of period $                   125 Sale Value of the land = $                      43 Less: Cost of the land (118-101) $                      17 Gain on the sale of land $                      26 Op. Balance of Equipment = $                      37 Less: Closing Balance $                      42 Difference is purchase $                        5

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