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Problem 12-10A Condensed financial data of Odgers Inc. follow.
Additional information:
1. New plant assets costing $229,000 were purchased for cash during the year.2. Old plant assets having an original cost of $131,675 and accumulated depreciation of $111,065 were sold for $3,435 cash.3. Bonds payable matured and were paid off at face value for cash.4. A cash dividend of $59,609 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).)
During the current year, John notified his father that he was bankrupt and would not be able to repay the $20,000 or the accrued interest of $1,800. Tom is a cash basis taxpayer whose only income is salary and interest income. The proper treatment..
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