Problem 12-10A
Condensed
financial data of Odgers Inc. follow.
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ODGERS INC. |
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Assets |
2014 |
2013 |
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Cash |
$ 122,008 |
$ 73,084 |
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Accounts receivable |
132,578 |
57,380 |
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Inventory |
169,875 |
155,304 |
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Prepaid expenses |
42,884 |
39,260 |
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Long-term investments |
208,380 |
164,590 |
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Plant assets |
430,350 |
366,175 |
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Accumulated depreciation |
(75,500 |
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(78,520 |
) |
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Total |
$1,030,575 |
$777,273 |
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Liabilities and Stockholders’ Equity |
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Accounts payable |
$ 154,020 |
$ 101,623 |
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Accrued expenses payable |
24,915 |
31,710 |
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Bonds payable |
166,100 |
220,460 |
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Common stock |
332,200 |
264,250 |
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Retained earnings |
353,340 |
159,230 |
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Total |
$1,030,575 |
$777,273 |
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ODGERS INC. |
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Sales revenue |
$586,575 |
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Less: |
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Cost of goods sold |
$204,545 |
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Operating expenses, excluding |
18,739 |
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Depreciation expense |
70,215 |
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Income taxes |
41,193 |
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Interest expense |
7,142 |
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Loss on disposal of plant assets |
11,325 |
353,159 |
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Net income |
$ 233,416 |
Additional information:
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1. |
New plant assets costing $151,000 were purchased for cash |
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2. |
Old plant assets having an original cost of $86,825 and accumulated |
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3. |
Bonds payable matured and were paid off at face value for cash. |
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4. |
A cash dividend of $39,306 was declared and paid during the |
Further analysis reveals that accounts payable pertain to merchandise
creditors.
Prepare a statement of cash flows for Odgers Inc. using the direct
method.(Show amounts that decrease cash flow with either a – sign e.g.
-15,000 or in parenthesis e.g. (15,000).)
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ODGERS INC. |
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$ |
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SHOW SOLUTION |
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LINK TO TEXT |
