Create a statement of cash flows for odgers inc

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Reference no: EM131810480

Problem

Condensed financial data of Odgers Inc. follow.

ODGERS INC.
Comparative Balance Sheets
December 31

Assets

2014

2013

Cash

$ 128,472

$ 76,956

Accounts receivable

139,602

60,420

Inventory

178,875

163,532

Prepaid expenses

45,156

41,340

Long-term investments

219,420

173,310

Plant assets

453,150

385,575

Accumulated depreciation

(79,500

(82,680 )

Total

$1,085,175

$818,453

Liabilities and Stockholders' Equity

 

 

Accounts payable

$ 162,180

$ 107,007

Accrued expenses payable

26,235

33,390

Bonds payable

174,900

232,140

Common stock

349,800

278,250

Retained earnings

372,060

167,666

Total

$1,085,175

$818,453

ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014

Sales revenue

 

$617,651

Less:

 

 

Cost of goods sold

$215,381

 

Operating expenses, excluding depreciation

19,732

 

Depreciation expense

73,935

 

Income taxes

43,375

 

Interest expense

7,521

 

Loss on disposal of plant assets

11,925

371,869

Net income

 

$ 245,782

Additional information:

1. New plant assets costing $159,000 were purchased for cash during the year.

2 Old plant assets having an original cost of $91,425 and accumulated depreciation of $77,115 were sold for $2,385 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of $41,388 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.

Reference no: EM131810480

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