Statement of Cash Flows—Indirect Method

The comparative balance sheet of Olson-Jones Industries Inc. forDecember 31, 20Y2 and 20Y1, is as follows:

		Dec. 31, 20Y2		Dec. 31, 20Y1
Assets
Cash		$209		$67
Accounts receivable (net)		119		84
Inventories		74		46
Land		170		191
Equipment		96		74
Accumulated depreciation-equipment		(26)		(13)
	Total Assets	$642		$449
Liabilities and Stockholders'Equity
Accounts payable (merchandise creditors)		$81		$67
Dividends payable		13		-
Common stock, $1 par		42		21
Paid-in capital: Excess of issue price overpar—common stock		102		53
Retained earnings		404		308
	Total liabilities and stockholders' equity	$642		$449

The following additional information is taken from therecords:

1. Land was sold for $53.
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 $138 credit to Retained Earnings for netincome.
6. There was a $42 debit to Retained Earnings for cash dividendsdeclared.

a. Prepare a statement of cash flows, using theindirect 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.

Olson-Jones Industries Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash flow fromoperating activities:
Depreciation
Gain on sale of land
Changes in current operating assets and liabilities:
Decrease in accounts receivable
Increase in inventories
Increase in accounts payable
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Cash from sale of land
Cash used for purchase of equipment
Net cash flow from investing activities
Cash flows from (used for) financing activities:
Cash from sale of common stock
Cash used for dividends
Net cash flow from financing activities
Increase in cash
Cash at the beginning of the year
Cash at the end of the year