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Ling Company reports the following information for the year ended December 31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading securities of $75,000. Prepare a statement of comprehensive income using the one-statement approach.

LING COMPANY Statement of Comprehensive Income For the Year Ended December 31, 2014
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Question 3

Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
Assets	2014		2013
Cash	$ 185,840		$ 111,320
Accounts receivable	201,940		87,400
Inventory	258,750		236,555
Prepaid expenses	65,320		59,800
Long-term investments	317,400		250,700
Plant assets	655,500		557,750
Accumulated depreciation	(115,000	)	(119,600	)
Total	$1,569,750		$1,183,925

Liabilities and Stockholders’ Equity
Accounts payable	$ 234,600		$ 154,790
Accrued expenses payable	37,950		48,300
Bonds payable	253,000		335,800
Common stock	506,000		402,500
Retained earnings	538,200		242,535
Total	$1,569,750		$1,183,925

ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue		$893,458
Less:
Cost of goods sold	$311,558
Operating expenses, excluding depreciation	28,543
Depreciation expense	106,950
Income tax expense	62,744
Interest expense	10,879
Loss on disposal of plant assets	17,250	537,924
Net income		$ 355,534

Additional information:

1.		New plant assets costing $230,000 were purchased for cash during the year.
2.		Old plant assets having an original cost of $132,250 and accumulated depreciation of $111,550 were sold for $3,450 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $59,869 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

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Adjustments to reconcile net income to

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Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
Assets	2014		2013
Cash	$ 102,616		$ 61,468
Accounts receivable	111,506		48,260
Inventory	142,875		130,620
Prepaid expenses	36,068		33,020
Long-term investments	175,260		138,430
Plant assets	361,950		307,975
Accumulated depreciation	(63,500	)	(66,040	)
Total	$866,775		$653,733

Liabilities and Stockholders’ Equity
Accounts payable	$ 129,540		$ 85,471
Accrued expenses payable	20,955		26,670
Bonds payable	139,700		185,420
Common stock	279,400		222,250
Retained earnings	297,180		133,922
Total	$866,775		$653,733

ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue		$493,344
Less:
Cost of goods sold	$172,034
Operating expenses, excluding depreciation	15,761
Depreciation expense	59,055
Income taxes	34,646
Interest expense	6,007
Loss on disposal of plant assets	9,525	297,028
Net income		$ 196,316

Additional information:

1.		New plant assets costing $127,000 were purchased for cash during the year.
2.		Old plant assets having an original cost of $73,025 and accumulated depreciation of $61,595 were sold for $1,905 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $33,058 was declared and paid during the year.

Further analysis reveals that accounts payable pertain to merchandise creditors. Prepare a statement of cash flows for Odgers Inc. using the direct 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
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EAT_1342614808683_0_9180296863143562_016		$338660
EAT_1342615306689_0_14769375819187802: EAT_1342615321220_0_18715713304495496
EAT_1342614808683_0_9180296863143562_034	$110410
EAT_1342614808683_0_9180296863143562_050	19310
EAT_1342614808683_0_9180296863143562_063	27280
EAT_1342614808683_0_9180296863143562_079	4730
		161730
EAT_1342614808683_0_9180296863143562_098		176930

EAT_1342614808683_0_9180296863143562_110
EAT_1342614808683_0_9180296863143562_126	1500
EAT_1342614808683_0_9180296863143562_141	-29000
EAT_1342614808683_0_9180296863143562_156	-100000
EAT_1342614808683_0_9180296863143562_172		-127500

EAT_1342614808683_0_9180296863143562_181
EAT_1342614808683_0_9180296863143562_201	45000
EAT_1342614808683_0_9180296863143562_216	-26030
EAT_1342614808683_0_9180296863143562_231	-36000
EAT_1342614808683_0_9180296863143562_243		-17030

EAT_1342614808683_0_9180296863143562_263		32400
EAT_1342614808683_0_9180296863143562_267		48400
EAT_1342614808683_0_9180296863143562_284		$

The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY Income Statements For the Years Ended December 31
	2014	2013
Net sales	$1,894,881	$1,754,841
Cost of goods sold	1,062,881	1,010,341
Gross profit	832,000	744,500
Selling and administrative expenses	504,341	483,341
Income from operations	327,659	261,159
Other expenses and losses
Interest expense	23,808	21,808
Income before income taxes	303,851	239,351
Income tax expense	93,808	74,808
Net income	$ 210,043	$ 164,543

OSBORNE COMPANY Balance Sheets December 31
Assets	2014	2013
Current assets
Cash	$ 60,100	$ 64,200
Debt investments (short-term)	74,000	50,000
Accounts receivable	122,141	107,141
Inventory	127,808	117,308
Total current assets	384,049	338,649
Plant assets (net)	659,054	530,354
Total assets	$1,043,103	$869,003
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 164,341	$149,741
Income taxes payable	45,308	43,808
Total current liabilities	209,649	193,549
Bonds payable	230,054	210,054
Total liabilities	439,703	403,603
Stockholders’ equity
Common stock ($5 par)	290,000	300,000
Retained earnings	313,400	165,400
Total stockholders’ equity	603,400	465,400
Total liabilities and stockholders’ equity	$1,043,103	$869,003

All sales were on account. Net cash provided by operating activities for 2014 was $246,830. Capital expenditures were $135,230, and cash dividends were $62,043. Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

(a)	Earnings per share	$3.67
(b)	Return on common stockholders’ equity	36.13	%
(c)	Return on assets	21.23	%
(d)	Current ratio	1.86	:1
(e)	Accounts receivable turnover	17.14	times
(f)	Average collection period	21.30	days
(g)	Inventory turnover	15.00	times
(h)	Days in inventory	24.33	days
(i)	Times interest earned	15.09	times
(j)	Asset turnover	1.84	times
(k)	Debt to assets	41.24	%
(l)	Current cash debt coverage	1.13	times
(m)	Cash debt coverage	0.68	times
(n)	Free cash flow	$84000.00

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For Interest

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Net Cash Provided by Operating Activities

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Cash Flows from Investing Activities

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Sale of Plant Assets

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Purchase of Investments

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Purchase of Plant Assets

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Net Cash used by Investing Activities

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Cash Flows from Financing Activities

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Sale of Common Stock

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Payment of Cash Dividends

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Redemption of Bonds

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Net Cash used by Financing Activities

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Net Increase in Cash

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Cash at Beginning of Period

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Cash at End of Period

Cash at Beginning of Period

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Cash Receipts from Customers

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Less

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Cash Payments

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To Suppliers

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For Operating Expenses

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For Income Taxes