Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, I need help with the following question... I have figured out some answers but am having trouble with the numbers portion... Problem 12-9ACondensed financial

Hello, I need help with the following question... I have figured out some answers but am having trouble with the numbers portion...

Problem 12-9ACondensed financial data of Odgers Inc. follow.
ODGERS INC. Comparative Balance Sheets December 31
Assets 2014 2013
Cash $118,776 $71,148
Accounts receivable 129,066 55,860
Inventory 165,375 151,190
Prepaid expenses 41,748 38,220
Long-term investments 202,860 160,230
Plant assets 418,950 356,475
Accumulated depreciation (73,500 ) (76,440 )
Total $1,003,275 $756,683
Liabilities and Stockholders Equity
Accounts payable $149,940 $98,931
Accrued expenses payable 24,255 30,870
Bonds payable 161,700 214,620
Common stock 323,400 257,250
Retained earnings 343,980 155,012
Total $1,003,275 $756,683
ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue $571,036
Less:
Cost of goods sold $199,126
Operating expenses, excluding depreciation 18,243
Depreciation expense 68,355
Income tax expense 40,102
Interest expense 6,953
Loss on disposal of plant assets 11,025 343,804
Net income $227,232
Additional information:
1. New plant assets costing $147,000were purchased for cash during the year.
2. Old plant assets having an original cost of $84,525and accumulated depreciation of $71,295were sold for $2,205cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $38,264was 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 at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Loss on Disposal of Plant AssetsRedemption of BondsDecrease in Accounts PayableIncrease in InventoryDepreciation ExpenseDecrease in InventorySale of Common StockIncrease in Accounts ReceivableDecrease in Accrued Expenses PayableIncrease in Accrued Expenses PayableIncrease in Accounts PayablePurchase of Plant AssetsIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesNet IncomeDecrease in Accounts ReceivablePurchase of InvestmentsSale of Plant AssetsPayment of Cash Dividends $
Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Depreciation ExpenseLoss on Disposal of Plant AssetsDecrease in Accounts PayablePurchase of InvestmentsDecrease in InventoryIncrease in InventoryIncrease in Accounts ReceivableIncrease in Accounts PayableDecrease in Accrued Expenses PayableIncrease in Prepaid ExpensesIncrease in Accrued Expenses PayablePurchase of Plant AssetsSale of Common StockPayment of Cash DividendsSale of Plant AssetsDecrease in Prepaid ExpensesDecrease in Accounts ReceivableRedemption of BondsNet Income $
Sale of Plant AssetsPurchase of InvestmentsLoss on Disposal of Plant AssetsPayment of Cash DividendsIncrease in Prepaid ExpensesIncrease in Accounts PayableDepreciation ExpenseIncrease in Accrued Expenses PayableDecrease in Accounts ReceivableSale of Common StockDecrease in Prepaid ExpensesIncrease in Accounts ReceivableIncrease in InventoryPurchase of Plant AssetsDecrease in Accrued Expenses PayableRedemption of BondsDecrease in InventoryNet IncomeDecrease in Accounts Payable
Redemption of BondsPurchase of InvestmentsNet IncomeIncrease in InventoryDepreciation ExpenseIncrease in Accounts PayablePurchase of Plant AssetsDecrease in Accounts PayableSale of Plant AssetsPayment of Cash DividendsDecrease in InventorySale of Common StockLoss on Disposal of Plant AssetsDecrease in Accrued Expenses PayableIncrease in Accrued Expenses PayableIncrease in Prepaid ExpensesIncrease in Accounts ReceivableDecrease in Prepaid ExpensesDecrease in Accounts Receivable
Decrease in Accounts ReceivableDecrease in InventorySale of Plant AssetsDecrease in Accrued Expenses PayableNet IncomeIncrease in InventoryPurchase of InvestmentsPurchase of Plant AssetsDepreciation ExpenseSale of Common StockIncrease in Accounts ReceivablePayment of Cash DividendsRedemption of BondsIncrease in Accounts PayableDecrease in Prepaid ExpensesDecrease in Accounts PayableLoss on Disposal of Plant AssetsIncrease in Accrued Expenses PayableIncrease in Prepaid Expenses
Increase in Accrued Expenses PayableDecrease in Accounts ReceivableSale of Plant AssetsPayment of Cash DividendsRedemption of BondsPurchase of Plant AssetsIncrease in Accounts ReceivablePurchase of InvestmentsSale of Common StockIncrease in Prepaid ExpensesDecrease in Accrued Expenses PayableDecrease in InventoryDepreciation ExpenseNet IncomeIncrease in InventoryLoss on Disposal of Plant AssetsDecrease in Accounts PayableIncrease in Accounts PayableDecrease in Prepaid Expenses
Depreciation ExpenseDecrease in Accounts PayablePurchase of Plant AssetsSale of Plant AssetsNet IncomeIncrease in Accounts PayablePurchase of InvestmentsRedemption of BondsPayment of Cash DividendsSale of Common StockDecrease in Prepaid ExpensesLoss on Disposal of Plant AssetsIncrease in InventoryDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableIncrease in Accrued Expenses PayableIncrease in Prepaid ExpensesDecrease in InventoryIncrease in Accounts Receivable
Increase in Accounts ReceivableDecrease in Accounts ReceivableSale of Common StockDecrease in Accounts PayableIncrease in Prepaid ExpensesLoss on Disposal of Plant AssetsDecrease in Accrued Expenses PayableIncrease in InventoryPurchase of InvestmentsIncrease in Accrued Expenses PayableDecrease in Prepaid ExpensesDepreciation ExpenseSale of Plant AssetsDecrease in InventoryPayment of Cash DividendsPurchase of Plant AssetsNet IncomeRedemption of BondsIncrease in Accounts Payable
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Increase in Accounts ReceivableIncrease in InventoryIncrease in Accounts PayablePayment of Cash DividendsPurchase of InvestmentsNet IncomeDepreciation ExpenseLoss on Disposal of Plant AssetsDecrease in Accounts ReceivableSale of Plant AssetsRedemption of BondsSale of Common StockDecrease in InventoryDecrease in Accounts PayableDecrease in Accrued Expenses PayableIncrease in Accrued Expenses PayableDecrease in Prepaid ExpensesIncrease in Prepaid ExpensesPurchase of Plant Assets
Decrease in Prepaid ExpensesDecrease in InventoryDepreciation ExpenseDecrease in Accounts PayableSale of Common StockIncrease in Accounts PayableRedemption of BondsLoss on Disposal of Plant AssetsDecrease in Accrued Expenses PayableIncrease in Accrued Expenses PayableIncrease in Prepaid ExpensesDecrease in Accounts ReceivableNet IncomeIncrease in InventoryIncrease in Accounts ReceivableSale of Plant AssetsPurchase of InvestmentsPurchase of Plant AssetsPayment of Cash Dividends
Decrease in Accrued Expenses PayableDecrease in Accounts PayableIncrease in Accounts ReceivablePayment of Cash DividendsDepreciation ExpensePurchase of InvestmentsRedemption of BondsIncrease in Accrued Expenses PayableDecrease in InventoryPurchase of Plant AssetsSale of Common StockDecrease in Accounts ReceivableIncrease in Prepaid ExpensesSale of Plant AssetsNet IncomeIncrease in Accounts PayableLoss on Disposal of Plant AssetsDecrease in Prepaid ExpensesIncrease in Inventory
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Decrease in Accounts PayableIncrease in InventoryDecrease in Accrued Expenses PayableIncrease in Accounts PayableLoss on Disposal of Plant AssetsDepreciation ExpensePurchase of Plant AssetsSale of Common StockDecrease in InventoryIncrease in Accrued Expenses PayableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesPayment of Cash DividendsRedemption of BondsSale of Plant AssetsIncrease in Accounts ReceivableNet IncomeDecrease in Accounts ReceivablePurchase of Investments
Payment of Cash DividendsDecrease in Accrued Expenses PayableSale of Plant AssetsSale of Common StockRedemption of BondsPurchase of InvestmentsDecrease in Prepaid ExpensesNet IncomeDecrease in InventoryDepreciation ExpenseIncrease in Accounts ReceivableLoss on Disposal of Plant AssetsIncrease in InventoryIncrease in Accounts PayablePurchase of Plant AssetsDecrease in Accounts PayableIncrease in Accrued Expenses PayableDecrease in Accounts ReceivableIncrease in Prepaid Expenses
Payment of Cash DividendsRedemption of BondsIncrease in Accrued Expenses PayableIncrease in Prepaid ExpensesDecrease in Accounts PayableSale of Common StockNet IncomeIncrease in Accounts PayableIncrease in Accounts ReceivableLoss on Disposal of Plant AssetsDecrease in Prepaid ExpensesIncrease in InventorySale of Plant AssetsDecrease in InventoryDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDepreciation ExpensePurchase of InvestmentsPurchase of Plant Assets
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Carl S Warren

5th Edition

9780538489737, 538749091, 538489731, 978-0538749091

Students also viewed these Accounting questions