Problem 12-9A
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Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$ 153,520
$ 91,960
Accounts receivable
166,820
72,200
Inventory
213,750
195,415
Prepaid expenses
53,960
49,400
Long-term investments
262,200
207,100
Plant assets
541,500
460,750
Accumulated depreciation
(95,000
)
(98,800
)
Total
$1,296,750
$978,025
Liabilities and Stockholders’ Equity
Accounts payable
$ 193,800
$ 127,870
Accrued expenses payable
31,350
39,900
Bonds payable
209,000
277,400
Common stock
418,000
332,500
Retained earnings
444,600
200,355
Total
$1,296,750
$978,025
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$738,074
Less:
Cost of goods sold
$257,374
Operating expenses, excluding depreciation
23,579
Depreciation expense
88,350
Income tax expense
51,832
Interest expense
8,987
Loss on disposal of plant assets
14,250
444,372
Net income
$ 293,702
Additional information:
1. New plant assets costing $190,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $109,250 and accumulated depreciation of $92,150 were sold for $2,850 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $49,457 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).)
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Entry field with incorrect answer now contains modified data
Entry field with correct answer
$Entry field with correct answer
293,702
Adjustments to...