Problem 12-10A

Condensed financial data of Odgers Inc. follow.

ODGERS INC. Comparative Balance Sheets December 31
Assets	2014	2013
Cash	$143,824	$86,152
Accounts receivable	156,284	67,640
Inventory	200,250	183,073
Prepaid expenses	50,552	46,280
Long-term investments	245,640	194,020
Plant assets	507,300	431,650
Accumulated depreciation	(89,000	)	(92,560	)
Total	$1,214,850		$916,255
Liabilities and Stockholders? Equity
Accounts payable	$181,560	$119,794
Accrued expenses payable	29,370	37,380
Bonds payable	195,800	259,880
Common stock	391,600	311,500
Retained earnings	416,520		187,701
Total	$1,214,850		$916,255

ODGERS INC. Income Statement Data For the Year Ended December 31, 2014
Sales revenue	$691,459
Less:
Cost of goods sold	$241,119
Operating expenses, excluding depreciation	22,090
Depreciation expense	82,770
Income taxes	48,558
Interest expense	8,419
Loss on disposal of plant assets	13,350	416,306
Net income	$275,153

Additional information:

1.	New plant assets costing $178,000were purchased for cash during the year.
2.	Old plant assets having an original cost of $102,350and accumulated depreciation of $86,330were sold for $2,670cash.
3.	Bonds payable matured and were paid off at face value for cash.
4.	A cash dividend of $46,334was declared and paid during the year.

Further analysis reveals that accounts payable pertain to merchandise creditors.

Prepare a statement of cash flows for Odgers Inc. using the direct 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
Cash Receipts from CustomersTo SuppliersSale of Plant AssetsPurchase of InvestmentsFor Income TaxesFor Operating ExpensesPurchase of Plant AssetsFor InterestSale of Common StockPayment of Cash DividendsRedemption of Bonds	$
AddLess: For Income TaxesSale of Plant AssetsFor Operating ExpensesPurchase of InvestmentsPayment of Cash DividendsCash PaymentsSale of Common StockTo SuppliersFor InterestPurchase of Plant AssetsRedemption of BondsCash Receipts from Customers
Sale of Common StockCash Receipts from CustomersSale of Plant AssetsPurchase of InvestmentsTo SuppliersFor Income TaxesPurchase of Plant AssetsPayment of Cash DividendsRedemption of BondsCash PaymentsFor Operating ExpensesFor Interest	$
Purchase of InvestmentsRedemption of BondsPurchase of Plant AssetsCash PaymentsSale of Common StockFor Operating ExpensesPayment of Cash DividendsCash Receipts from CustomersTo SuppliersFor InterestFor Income TaxesSale of Plant Assets
Sale of Plant AssetsCash PaymentsCash Receipts from CustomersPurchase of InvestmentsPurchase of Plant AssetsFor InterestSale of Common StockPayment of Cash DividendsTo SuppliersRedemption of BondsFor Income TaxesFor Operating Expenses
Cash Receipts from CustomersFor InterestPayment of Cash DividendsFor Income TaxesTo SuppliersRedemption of BondsSale of Common StockPurchase of Plant AssetsCash PaymentsFor Operating ExpensesSale of Plant AssetsPurchase of Investments
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
Purchase of Plant AssetsCash PaymentsSale of Common StockFor Income TaxesPayment of Cash DividendsRedemption of BondsCash Receipts from CustomersFor InterestTo SuppliersFor Operating ExpensesSale of Plant AssetsPurchase of Investments
For Operating ExpensesRedemption of BondsFor InterestCash PaymentsCash Receipts from CustomersSale of Common StockTo SuppliersPurchase of Plant AssetsFor Income TaxesPurchase of InvestmentsSale of Plant AssetsPayment of Cash Dividends
For InterestCash PaymentsSale of Common StockPurchase of Plant AssetsPayment of Cash DividendsCash Receipts from CustomersFor Operating ExpensesTo SuppliersFor Income TaxesRedemption of BondsSale of Plant AssetsPurchase of Investments
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
To SuppliersSale of Common StockCash PaymentsSale of Plant AssetsPayment of Cash DividendsPurchase of InvestmentsCash Receipts from CustomersFor Income TaxesFor Operating ExpensesFor InterestPurchase of Plant AssetsRedemption of Bonds
Sale of Plant AssetsPurchase of InvestmentsFor Income TaxesPurchase of Plant AssetsSale of Common StockPayment of Cash DividendsRedemption of BondsCash Receipts from CustomersFor InterestCash PaymentsTo SuppliersFor Operating Expenses
For InterestPayment of Cash DividendsPurchase of Plant AssetsRedemption of BondsTo SuppliersSale of Plant AssetsCash PaymentsCash Receipts from CustomersFor Income TaxesPurchase of InvestmentsSale of Common StockFor Operating Expenses
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	$

Problem 12-10A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 Cash $ 143,824 Accounts receivable 156,284 Inventory 200,250 Prepaid expenses 50,552 Long-term investments 245,640 Plant assets 507,300 Accumulated depreciation (89,000 ) Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 2013 $ 86,152 67,640 183,073 46,280 194,020 431,650 (92,560 ) $1,214,850 $916,255 $ 181,560 29,370 195,800 391,600 416,520 $ 119,794 37,380 259,880 311,500 187,701 $1,214,850 $916,255 ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 Sales revenue Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income taxes Interest expense Loss on disposal of plant assets Net income $691,459 $241,119 22,090 82,770 48,558 8,419 13,350 416,306 $ 275,153 Additional information: 1. New plant assets costing $178,000 were purchased for cash during the year. Old plant assets having an original cost of $102,350 and accumulated depreciation of 2. $86,330 were sold for $2,670 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $46,334 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors. Prepare a statement of cash flows for Odgers Inc. using the direct 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 Flow s from Operating Activities $ Cash Receipts from Customers Less : Cash Payments $ To Suppliers For Income Taxes For Operating Expenses For Interest Net Cash Provided by Operating Activities Cash Flow s from Investing Activities Sale of Plant Assets Purchase of Plant Assets Purchase of Investments Net Cash Provided by Investing Activities Cash Flow s from Financing Activities Sale of Common Stock Payment of Cash Dividends Redemption of Bonds Net Cash used by Financing Activities Net Increase in Cash Cash at Beginning of Period $ Cash at End of Period