Problem - Condensed financial data of Odgers Inc. follow.
|
ODGERS INC. Comparative Balance Sheets December 31
|
|
Assets
|
2014
|
2013
|
|
Cash
|
$ 142,208
|
$ 85,184
|
|
Accounts receivable
|
154,528
|
66,880
|
|
Inventory
|
198,000
|
181,016
|
|
Prepaid expenses
|
49,984
|
45,760
|
|
Long-term investments
|
242,880
|
191,840
|
|
Plant assets
|
501,600
|
426,800
|
|
Accumulated depreciation
|
(88,000)
|
(91,520)
|
|
Total
|
$1,201,200
|
$905,960
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable
|
$ 179,520
|
$ 118,448
|
|
Accrued expenses payable
|
29,040
|
36,960
|
|
Bonds payable
|
193,600
|
256,960
|
|
Common stock
|
387,200
|
308,000
|
|
Retained earnings
|
411,840
|
185,592
|
|
Total
|
$1,201,200
|
$905,960
|
|
ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
|
|
Sales revenue
|
|
$683,690
|
|
Less:
|
|
|
|
Cost of goods sold
|
$238,410
|
|
|
Operating expenses, excluding depreciation
|
21,842
|
|
|
Depreciation expense
|
81,840
|
|
|
Income taxes
|
48,013
|
|
|
Interest expense
|
8,325
|
|
|
Loss on disposal of plant assets
|
13,200
|
411,630
|
|
Net income
|
|
$ 272,060
|
Additional information:
|
1.
|
New plant assets costing $176,000 were purchased for cash during the year.
|
|
2.
|
Old plant assets having an original cost of $101,200 and accumulated depreciation of $85,360 were sold for $2,640 cash.
|
|
3.
|
Bonds payable matured and were paid off at face value for cash.
|
|
4.
|
A cash dividend of $45,812 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.