Question

Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 113,120 $ 67,760 Accounts receivable 122,920 53,200 Inventory 157,500 143,990 Prepaid expenses 39,760 36,400 Long-term investments 193,200 152,600 Plant assets 399,000 339,500 Accumulated depreciation (70,000 ) (72,800 ) Total $955,500 $720,650 Liabilities and Stockholders’ Equity Accounts payable $ 142,800 $ 94,220 Accrued expenses payable 23,100 29,400 Bonds payable 154,000 204,400 Common stock 308,000 245,000 Retained earnings 327,600 147,630 Total $955,500 $720,650 ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 Sales revenue $543,844 Less: Cost of goods sold $189,644 Operating expenses, excluding depreciation 17,374 Depreciation expense 65,100 Income tax expense 38,192 Interest expense 6,622 Loss on disposal of plant assets 10,500 327,432 Net income $ 216,412 Additional information: 1. New plant assets costing $140,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $80,500 and accumulated depreciation of $67,900 were sold for $2,100 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $36,442 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) ODGERS INC. Statement of Cash Flows For the Year Ended December 31, 2014 $ Adjustments to reconcile net income to $ $ LINK TO TEXT

Answer 1

Statement of Cash Flows
For the Year Ended December 31, 2014
Cash Flows from Operating Activities:
Net income		216412
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	65100
Loss on disposal of plant assets	10500
Increase in Accounts Receivable	-69720
Increase in inventory	-13510
Increase in Prepaid Expenses	-3360
Increase in accounts payable	48580
Decrease in accrued expenses payable	-6300
		31290
Net cash provided by operating activities		247702
Cash Flows from Investing Activities:
Purchase of Investments	-40600
Purchase of Plant Assets	-140000
Sale of plant assets	2100
Net Cash used by Investing Activities		-178500
Cash Flows from Financing Activities
Payment of Cash Dividends	-36442
Redemption of Bonds Payable	-50400
Issuance of Common Stock	63000
Net Cash Used by Financing Activities		-23842
Net Increase in Cash		45360
Cash at Beginning of Period		67760
Cash at End of Period		113120