Solution-Draw a statement of cash flows using the indirect

Draw a statement of cash flows using the indirect method

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Reference no: EM131796929

Problem

Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
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. Income Statement Data For the Year Ended December 31, 2014
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).)

Reference no: EM131796929

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Draw a statement of cash flows using the indirect method

Reference no: EM131796929

Reference no: EM131796929

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