Problem 12-9A
Condensed financial data of Odgers Inc. follow.
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ODGERS INC.
Comparative Balance Sheets December 31 |
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Assets
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2014
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2013
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| Cash |
$ 147,864
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$ 88,572
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| Accounts receivable |
160,674
|
69,540
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| Inventory |
205,875
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188,216
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| Prepaid expenses |
51,972
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47,580
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| Long-term investments |
252,540
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199,470
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| Plant assets |
521,550
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443,775
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| Accumulated depreciation |
(91,500
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)
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(95,160
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)
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| Total |
$1,248,975
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$941,993
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Liabilities and Stockholders’ Equity
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| Accounts payable |
$ 186,660
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$ 123,159
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| Accrued expenses payable |
30,195
|
38,430
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| Bonds payable |
201,300
|
267,180
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| Common stock |
402,600
|
320,250
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| Retained earnings |
428,220
|
192,974
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| Total |
$1,248,975
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$941,993
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| Sales revenue |
$710,882
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| Less: | ||||
| Cost of goods sold |
$247,892
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| Operating expenses, excluding depreciation |
22,710
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| Depreciation expense |
85,095
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| Income tax expense |
49,922
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| Interest expense |
8,656
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| Loss on disposal of plant assets |
13,725
|
428,000
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| Net income |
$ 282,882
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Additional information:
| 1. | New plant assets costing $183,000 were purchased for cash during the year. | |
| 2. | Old plant assets having an original cost of $105,225 and accumulated depreciation of $88,755 were sold for $2,745 cash. | |
| 3. | Bonds payable matured and were paid off at face value for cash. | |
| 4. | A cash dividend of $47,636 was declared and paid during the year. |
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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ODGERS INC.
Statement of Cash Flows For the Year Ended December 31, 2014 |
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$
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$
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$
[removed] |
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