Condensed financial data of Odgers Inc. followPrepare 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
Question 3
Condensed financial data of Odgers Inc. follow.
ODGERS INC. | ||||||
Assets | 2014 | 2013 | ||||
Cash | $ 159,176 | $ 95,348 | ||||
Accounts receivable | 172,966 | 74,860 | ||||
Inventory | 221,625 | 202,615 | ||||
Prepaid expenses | 55,948 | 51,220 | ||||
Long-term investments | 271,860 | 214,730 | ||||
Plant assets | 561,450 | 477,725 | ||||
Accumulated depreciation | (98,500 | (102,440 | ||||
Total | $1,344,525 |
| $1,014,058 |
| ||
Liabilities and Stockholders’ Equity | ||||||
Accounts payable | $ 200,940 | $ 132,581 | ||||
Accrued expenses payable | 32,505 | 41,370 | ||||
Bonds payable | 216,700 | 287,620 | ||||
Common stock | 433,400 | 344,750 | ||||
Retained earnings | 460,980 |
| 207,737 |
| ||
Total | $1,344,525 |
| $1,014,058 |
|
ODGERS INC. | ||||
Sales revenue | $765,266 | |||
Less: | ||||
Cost of goods sold | $266,856 | |||
Operating expenses, excluding depreciation | 24,448 | |||
Depreciation expense | 91,605 | |||
Income tax expense | 53,742 | |||
Interest expense | 9,318 | |||
Loss on disposal of plant assets | 14,775 | 460,744 | ||
Net income | $ 304,522 |
Additional information:
1. | New plant assets costing $197,000 were purchased for cash during the year. | |
2. | Old plant assets having an original cost of $113,275 and accumulated depreciation of $95,545 were sold for $2,955 cash. | |
3. | Bonds payable matured and were paid off at face value for cash. | |
4. | A cash dividend of $51,279 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. | ||
Adjustments to reconcile net income to | ||