Condensed financial data of Odgers Inc. follow.
|
ODGERS INC.
Comparative Balance Sheets
December 31
|
|
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.
Income Statement Data
For the Year Ended December 31, 2014
|
| 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).)