Instructions
Answers are entered in the cells with gray backgrounds.
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Exercise 15-17
Name:
Section:
Score:
Key Code:
0%
[Key code here]
Cells with non-gray backgrounds are protected and cannot be edited.
a.
Net income
Adjustments to reconcile net income to net cash
flow from operating activities:
Depreciation
Net cash flow from operating activities
Net cash flow from investing activities
Cash flows from (used for) financing activities:
Net cash flow from financing activities
Net increase (decrease) in cash
b.
[Key essay answer here]
Statement of Cash Flows
Cash flows from (used for) investing activities:
For the Year Ended December 31, 20Y2
Cash flows from (used for) operating activities:
Olson-Jones Industries Inc.
Instructions
Answers are entered in the cells with gray backgrounds.
a.
Net income 62$
Adjustments to reconcile net income to net cash
flow from operating activities:
Gain on sale of land
Net cash flow from operating activities 38$
Cash flows from (used for) investing activities:
Cash received from sale of land
Cash paid for purchase of equipment
Net cash flow from investing activities 90
Cash received from sale of common stock
Cash paid for dividends
Cash flows from (used for) financing activities:
Net cash flow from financing activities 41
169$
Cash balance, January 1, 20Y2 14
Cash balance, December 31, 20Y2 183$
Cells with non-gray backgrounds are protected and cannot be edited.
ON
Solution
Exercise 15-17
$26 of depreciation expense, which has no effect on cash.
A $40 gain on the sale of land. The proceeds from this sale of $120, which
include the gain, are reported in the Investing Activities section of the
statement of cash flows.
Changes in current operating assets and liabilities that are added or deducted,
depending on their effect on cash flows:
Increase in accounts receivable, $6 deducted
Increase in inventories, $18 deducted
Increase in accounts payable, $14 added
An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded.
Score:
Olson-Jones Industries Inc.
Statement of Cash Flows
Net increase (decrease) in cash
For the Year Ended December 31, 20Y2
Cash flows from (used for) operating activities:
Name:
Section:
Olson-Jones Industries Inc.’s net income was more than the cash flows from
operations because of:
$26 of depreciation expense, which has no effect on cash.