Reference no: EM131770704

Problem 12-10A Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
Assets	2014	2013
Cash	mce_markernbsp;185,032	mce_markernbsp;110,836
Accounts receivable	201,062	87,020
Inventory	257,625	235,527
Prepaid expenses	65,036	59,540
Long-term investments	316,020	249,610
Plant assets	652,650	555,325
Accumulated depreciation	(114,500)	(119,080)
Total	$1,562,925	$1,178,778
Liabilities and Stockholders' Equity
Accounts payable	mce_markernbsp;233,580	mce_markernbsp;154,117
Accrued expenses payable	37,785	48,090
Bonds payable	251,900	334,340
Common stock	503,800	400,750
Retained earnings	535,860	241,481
Total	$1,562,925	$1,178,778

 

ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue	$889,573
Less:
Cost of goods sold	$310,203
Operating expenses, excluding depreciation	28,419
Depreciation expense	106,485
Income taxes	62,471
Interest expense	10,832
Loss on disposal of plant assets	17,175	535,585
Net income	$353,988

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).)