Prepare a statement of cash flows for odgers inc

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Reference no: EM131819721

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

ODGERS INC.
Comparative Balance Sheets
December 31

Assets

2014

2013

Cash

$150,288

$90,024

Accounts receivable

163,308

70,680

Inventory

209,250

191,301

Prepaid expenses

52,824

48,360

Long-term investments

256,680

202,740

Plant assets

530,100

451,050

Accumulated depreciation

(93,000

(96,720

Total

$1,269,450

$957,435

     

Liabilities and Stockholders' Equity

   

Accounts payable

$189,720

$125,178

Accrued expenses payable

30,690

39,060

Bonds payable

204,600

271,560

Common stock

409,200

325,500

Retained earnings

435,240

196,137

Total

$1,269,450

$957,435

 

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

Sales revenue

 

$722,536

Less:

   

     Cost of goods sold

$251,956

 

     Operating expenses, excluding depreciation

23,083

 

     Depreciation expense

86,490

 

     Income taxes

50,741

 

     Interest expense

8,798

 

     Loss on disposal of plant assets

13,950

435,018

Net income

 

$287,518

Additional information:

1. New plant assets costing $186,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $106,950 and accumulated depreciation of $90,210 were sold for $2,790 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of $48,415 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

Reference no: EM131819721

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