Solution 12-9A - Problem 12-9A Condensed financial data of...

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Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 124,432 $ 74,536 Accounts receivable 135,212 58,520 Inventory 173,250 158,389 Prepaid expenses 43,736 40,040 Long-term investments 212,520 167,860 Plant assets 438,900 373,450 Accumulated depreciation (77,000 ) (80,080 ) Total $1,051,050 $792,715 Liabilities and Stockholders’ Equity Accounts payable $ 157,080 $ 103,642 Accrued expenses payable 25,410 32,340 Bonds payable 169,400 224,840 Common stock 338,800 269,500 Retained earnings 360,360 162,393 Total $1,051,050 $792,715 ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 Sales revenue $598,228 Less: Cost of goods sold $208,608 Operating expenses, excluding depreciation 19,111 Depreciation expense 71,610 Income tax expense 42,011 Interest expense 7,284 Loss on disposal of plant assets 11,550 360,174 Net income $ 238,054 Additional information: 1. New plant assets costing $154,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $88,550 and accumulated depreciation of $74,690 were sold for $2,310 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $40,087 was declared and paid during the year.
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Unformatted text preview: Prepare a statement oF cash ²ows using the indirect method. (Show amounts that decrease cash fow 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 $ Adjustments to reconcile net income to Cash Flows from Operating Activities Net Income 238054 $ $ Net Cash Provided by Operating Activities Decrease in Accrued Expenses Payable (6930) Increase in Inventory (14861) Increase in Accounts Receivable (76692) Depreciation Expense 71610 Loss on Disposal of Plant Assets 11550 Increase in Prepaid Expenses (3696) Increase in Accounts Payable 53438 34419 Net Cash Provided by Operating Activities 272473 Cash Flows from Investing Activities Purchase of Investments (44660) Purchase of Plant Assets (154000) Sale of Plant Assets 2310 Net Cash used by Investing Activities (196350) Cash Flows from Financing Activities Redemption of Bonds (55440) Sale of Common Stock 69300 Payment of Cash Dividends (40087) Net Cash used by Financing Activities (26227) Net Increase in Cash 49896 Cash at Beginning of Period 74536 Cash at End of Period 124432...
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