Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 41

Statement of cash flows-indirect method
The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

The following additional information is taken from the records:
A. Land was sold for $120.
B. Equipment was acquired for cash.
C. There were no disposals of equipment during the year.
D. The common stock was issued for cash.
E. There was a $62 credit to Retained Earnings for net income.
F. There was a $24 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.
B. Was Olson-Jones's net cash flow from operations more or less than net income? What is the source of this difference?