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problem_12-9a.docxACC/291 - 49133250 / Assignment: Week 5 Assignment
*Problem 12-9A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$ 111,504
$ 66,792
Accounts receivable
121,164
52,440
Inventory
155,250
141,933
Prepaid expenses
39,192
35,880
Long-term investments
190,440
150,420
Plant assets
393,300
334,650
Accumulated depreciation
(69,000 )
(71,760 )
Total
$941,850
$710,355
Liabilities and Stockholders’ Equity
Accounts payable
$ 140,760
$ 92,874
Accrued expenses payable
22,770
28,980
Bonds payable
151,800
201,480
Common stock
303,600
241,500
Retained earnings
322,920
145,521
Total
$941,850
$710,355
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$536,075
Less:
Cost of goods sold
$186,935
Operating expenses, excluding depreciation
17,126
Depreciation expense
64,170
Income tax expense
37,646
Interest expense
6,527
Loss on disposal of plant assets
10,350
322,754
Net income
$ 213,321
Additional information:
1.
New plant assets costing $138,000 were purchased for cash during the year.
2.
Old plant assets having an original cost of $79,350 and accumulated depreciation of $66,930 were sold for
$2,070 cash.
3.
Bonds payable matured and were paid off at face value for cash.
4.
A cash dividend of $35,922 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
Cash Flows from Operating Activities<br>
Net Income
$
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities<br>
Decrease in Accrued Expenses Payable$
Increase in Inventory
Increase in Accounts Receivable
Depreciation Expense
Loss on Disposal of Plant Assets
Increase in Prepaid Expenses
Increase in Accounts Payable
Net Cash Provided by Operating Activities<br>
Cash Flows from Investing Activities
Purchase of Investments
Purchase of Plant Assets
Sale of Plant Assets
Net Cash used by Investing Activities<br>
Cash Flows from Financing Activities
Redemption of Bonds
Sale of Common Stock
Payment of Cash Dividends
Net Cash used by Financing Activities<br>
Net Increase in Cash<br>
Cash at Beginning of Period<br>
Cash at End of Period
$
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