Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 2013
Question:
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 tax expense 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.
Instructions Prepare a statement of cash flows using the indirect method.
AppendixLO1
Step by Step Answer:
Accounting Tools For Business Decision Making
ISBN: 9781118771112
5th Edition
Authors: Kimmel, Wetlands, Kieso