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Cash-based measures: (2) Cash debt coverage. (3) Free cash flow. (a) Niet cash $38.500 ODGERS INC. Comparative Balance Sheets December 31 Prepare a s flows-inde (LO 4), AP Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation Total 2014 $ 80,800 87,800 112,500 28,400 138,000 285,000 (50,000) $682,500 (1) Current cash debt coverage. flows for Kurtzel Company using the direct method. P12-9A Condensed financial data of Odgers Inc. follow. Prepare a statement of cash flows using the indirect method. 2013 $ 48,400 38,000 102,850 26,000 109,000 242,500 (52,000) $514,750 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable $102,000 $ 67,300 Bonds payable 16,500 21,000 Common stock 110,000 146,000 Retained earnings 220,000 175,000 234,000 105,450 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 12,410 depreciation 46,500 Depreciation expense 27,280 Income tax expense 4,730 Interest expense 7,500 233,880 Loss on disposal of plant assets $154,580 Net income Instructions sented in P12-9A. Further analysis reveals that 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. Net cash provided- $176,930 Prepare a state

Answer 1

Statement of Cash Flows
For the Year Ended December 31, 2014
Cash Flows from Operating Activities:
Net income		154580
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	46500
Loss on disposal of plant assets	7500
Increase in Accounts Receivable	-49800
Increase in inventory	-9650
Increase in Prepaid expense	-2400
Increase in accounts payable	34700
Decrease in accrued expenses payable	-4500
		22350
Net cash provided by operating activities		176930
Cash Flows from Investing Activities:
Purchase of Plant Assets	-100000
Purchase of Investments	-29000
Sale of plant assets	1500
Net Cash used by Investing Activities		-127500
Cash Flows from Financing Activities
Payment of Cash Dividends	-26030
Redemption of Bonds Payable	-36000
Issuance of Common Stock	45000
Net Cash Used by Financing Activities		-17030
Net Increase in Cash		32400
Cash at Beginning of Period		48400
Cash at End of Period		80800