Question

Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
Assets		2014			2013
Cash		$ 154,328			$ 92,444
Accounts receivable		167,698			72,580
Inventory		214,875			196,444
Prepaid expenses		54,244			49,660
Long-term investments		263,580			208,190
Plant assets		544,350			463,175
Accumulated depreciation		(95,500	)		(99,320	)
Total		$1,303,575			$983,173
Liabilities and Stockholders’ Equity
Accounts payable		$ 194,820			$ 128,543
Accrued expenses payable		31,515			40,110
Bonds payable		210,100			278,860
Common stock		420,200			334,250
Retained earnings		446,940			201,410
Total		$1,303,575			$983,173

ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue				$741,959
Less:
Cost of goods sold		$258,729
Operating expenses, excluding depreciation		23,703
Depreciation expense		88,815
Income tax expense		52,105
Interest expense		9,034
Loss on disposal of plant assets		14,325		446,711
Net income				$ 295,248

Additional information:

1.		New plant assets costing $191,000 were purchased for cash during the year.
2.		Old plant assets having an original cost of $109,825 and accumulated depreciation of $92,635 were sold for $2,865 cash.
3.		Bonds payable matured and were paid off at face value for cash.
4.		A cash dividend of $49,718 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

Answer 1

Answer-

ODGERS INC.
STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)
FOR THE YEAR ENDED DECEMBER 31,2014
Particulars		Amount
		$
Cash flow from operating activities
Net Income		295248
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation		88815
Loss on disposal of plant assets		14325
Change in operating assets & liabilities
Increase in accounts receivable		-95118
Increase in inventories		-18431
Increase in prepaid expenses		-4584
Increase in accounts payable		66277
Decrease in accrued expenses payable		-8595
Net cash flow from operating activities (a)		337937
Cash Flow from Investing activities
Equipment purchased		-191000
Old plant assets sold		2865
Long term investments purchased		-55390
Net cash Flow from Investing activities (b)		-243525
Cash Flow from Financing activities
Cash dividends paid		-49718
Bonds paid		-68760
Common stock issued		85950
Net cash Flow from Financing activities (c)		-32528
Net Change in cash c=a+b+c		61884
Beginning cash balance		92444
Closing cash balance		154328