Reference no: EM131771950

 

Problem

Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
Assets	2014	2013
Cash	mce_markernbsp;143,824	mce_markernbsp;86,152
Accounts receivable	156,284	67,640
Inventory	200,250	183,073
Prepaid expenses	50,552	46,280
Long-term investments	245,640	194,020
Plant assets	507,300	431,650
Accumulated depreciation	(89,000	)	(92,560	)
Total	$1,214,850		$916,255
Liabilities and Stockholders' Equity
Accounts payable	mce_markernbsp;181,560	mce_markernbsp;119,794
Accrued expenses payable	29,370	37,380
Bonds payable	195,800	259,880
Common stock	391,600	311,500
Retained earnings	416,520		187,701
Total	$1,214,850		$916,255

 

ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue	$691,459
Less:
Cost of goods sold	$241,119
Operating expenses, excluding depreciation	22,090
Depreciation expense	82,770
Income taxes	48,558
Interest expense	8,419
Loss on disposal of plant assets	13,350	416,306
Net income	$275,153

Additional information:

1. New plant assets costing $178,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $102,350 and accumulated depreciation of $86,330 were sold for $2,670 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $46,334 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.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)