Problem
Condensed financial data of Odgers Inc. follow.
|
ODGERS INC.
Comparative Balance Sheets
December 31
|
|
Assets
|
2014
|
2013
|
|
Cash
|
$ 128,472
|
$ 76,956
|
|
Accounts receivable
|
139,602
|
60,420
|
|
Inventory
|
178,875
|
163,532
|
|
Prepaid expenses
|
45,156
|
41,340
|
|
Long-term investments
|
219,420
|
173,310
|
|
Plant assets
|
453,150
|
385,575
|
|
Accumulated depreciation
|
(79,500
|
(82,680 )
|
|
Total
|
$1,085,175
|
$818,453
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable
|
$ 162,180
|
$ 107,007
|
|
Accrued expenses payable
|
26,235
|
33,390
|
|
Bonds payable
|
174,900
|
232,140
|
|
Common stock
|
349,800
|
278,250
|
|
Retained earnings
|
372,060
|
167,666
|
|
Total
|
$1,085,175
|
$818,453
|
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
|
|
Sales revenue
|
|
$617,651
|
|
Less:
|
|
|
|
Cost of goods sold
|
$215,381
|
|
|
Operating expenses, excluding depreciation
|
19,732
|
|
|
Depreciation expense
|
73,935
|
|
|
Income taxes
|
43,375
|
|
|
Interest expense
|
7,521
|
|
|
Loss on disposal of plant assets
|
11,925
|
371,869
|
|
Net income
|
|
$ 245,782
|
Additional information:
1. New plant assets costing $159,000 were purchased for cash during the year.
2 Old plant assets having an original cost of $91,425 and accumulated depreciation of $77,115 were sold for $2,385 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $41,388 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.