Prepare a statement of cash flows for odgers inc

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Reference no: EM131810166

Problem

Condensed financial data of Odgers Inc. follow.

ODGERS INC.
Comparative Balance Sheets
December 31

Assets

2014

2013

Cash

$ 151,904

$ 90,992

Accounts receivable

165,064

71,440

Inventory

211,500

193,358

Prepaid expenses

53,392

48,880

Long-term investments

259,440

204,920

Plant assets

535,800

455,900

Accumulated depreciation

(94,000

(97,760

Total

$1,283,100

$967,730




Liabilities and Stockholders' Equity



Accounts payable

$ 191,760

$ 126,524

Accrued expenses payable

31,020

39,480

Bonds payable

206,800

274,480

Common stock

413,600

329,000

Retained earnings

439,920

198,246

Total

$1,283,100

$967,730

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

Sales revenue


$730,305

Less:



Cost of goods sold

$254,665


Operating expenses, excluding depreciation

23,331


Depreciation expense

87,420


Income tax expense

51,286


Interest expense

8,892


Loss on disposal of plant assets

14,100

439,694

Net income


$ 290,611

Additional information:

1. New plant assets costing $188,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $108,100 and accumulated depreciation of $91,180 were sold for $2,820 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $48,937 was declared and paid during the year.

Prepare a statement of cash flows using the indirect method.

Reference no: EM131810166

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