Question: The comparative balance sheet of Olson-Jones
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: 1. Land was sold for $120. 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 $62 credit to Retained Earnings for net income. 6. 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 Industries Inc.’s net cash flow from operations more or less than net income? What is the source of this difference?
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Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $183 $ 14 Accounts receivable (net) . 55 49 Inventories 117 99 Land .... 250 330 Equipment... Accumulated depreciation-equipment 205 175 (68) (42) Total assets.. $742 $625 Liabilities and Stockholders'Equity $ 51 $ 37 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.. ..... 125 80 85 70 476 438 $742 $625
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