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Attached is Problem 12-9A for ACC291, and I am struggling with it! Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance
Attached is Problem 12-9A for ACC291, and I am struggling with it!
Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 Cash $ 157,560 2013 $ 94,380 Accounts receivable 171,210 74,100 Inventory 219,375 200,558 Prepaid expenses 55,380 50,700 Long-term investments 269,100 212,550 Plant assets 555,750 Accumulated depreciation (97,500 ) Total 472,875 (101,400 ) $1,330,875 $1,003,763 $ 198,900 $ 131,235 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable 32,175 40,950 Bonds payable 214,500 284,700 Common stock 429,000 341,250 Retained earnings 456,300 205,628 $1,330,875 $1,003,763 Total ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 Sales revenue $757,497 Less: Cost of goods sold $264,147 Operating expenses, excluding depreciation 24,200 Depreciation expense 90,675 Income tax expense 53,196 Interest expense 9,224 Loss on disposal of plant assets 14,625 Net income 456,067 $ 301,430 Additional information: 1. 2. 3. 4. New plant assets costing $195,000 were purchased for cash during the year. Old plant assets having an original cost of $112,125 and accumulated depreciation of $94,575 were sold for $2,925 cash. Bonds payable matured and were paid off at face value for cash. A cash dividend of $50,758 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 Cash Flows from Operating Activities $ Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities $ Decrease in Accrued Expenses Payable Increase in Inventory Increase in Accounts Receivable Depreciation Expense Loss on Disposal of Plant Assets Increase in Prepaid Expenses Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Investments Purchase of Plant Assets Sale of Plant Assets Net Cash used by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Sale of Common Stock Payment of Cash Dividends Net Cash used by Financing Activities Net Increase in Cash Cash at Beginning of Period 94,380 $ Cash at End of Period LINK TO TEXT 157,560Step by Step Solution
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