The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $177 $56 Accounts receivable (net) 101 70 Inventories 63 38 Land 144 156 Equipment 81 61 Accumulated depreciation-equipment (22) (11) Total Assets $544 $37
Accounts payable (merchandise creditors) $51 $37
Dividends payable 5
Common stock, $1 par 125 80
Paid-in capital: Excess of issue price over par—common stock 85 70
Retained earnings 476 438
Total liabilities and stockholders’ equity $742 $625
a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
b. Was the net cash flow from operations for Olson-Jones Industries Inc. more or less than net income? What is the source of this difference?