Prepare a statement of cash flows for odgers inc using the
Condensed financial data of Odgers Inc. follow.
|
ODGERS INC. |
||||||
|
Assets |
2014 |
2013 |
||||
| Cash |
$ 80,800 |
$ 48,400 |
||||
| Accounts receivable |
87,800 |
38,000 |
||||
| Inventory |
112,500 |
102,850 |
||||
| Prepaid expenses |
28,400 |
26,000 |
||||
| Long-term investments |
138,000 |
109,000 |
||||
| Plant assets |
285,000 |
242,500 |
||||
| Accumulated depreciation |
(50,000 |
) |
(52,000 |
) |
||
| Total |
$682,500 |
$514,750 |
||||
|
Liabilities and Stockholders' Equity |
||||||
| Accounts payable |
$ 102,000 |
$ 67,300 |
||||
| Accrued expenses payable |
16,500 |
21,000 |
||||
| Bonds payable |
110,000 |
146,000 |
||||
| Common stock |
220,000 |
175,000 |
||||
| Retained earnings |
234,000 |
105,450 |
||||
| Total |
$682,500 |
$514,750 |
||||
|
ODGERS INC. |
||||
| Sales revenue |
$388,460 |
|||
| Less: | ||||
| Cost of goods sold |
$135,460 |
|||
| Operating expenses, excluding depreciation |
12,410 |
|||
| Depreciation expense |
46,500 |
|||
| Income taxes |
27,280 |
|||
| Interest expense |
4,730 |
|||
| Loss on disposal of plant assets |
7,500 |
233,880 |
||
| Net income |
$ 154,580 |
|||
Additional information:
| 1. | New plant assets costing $100,000 were purchased for cash during the year. | |
| 2. | Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash. | |
| 3. | Bonds payable matured and were paid off at face value for cash. | |
| 4. | A cash dividend of $26,030 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).)
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