Problem 12-10ACondensed financial data of Odgers Inc. follow. | ODGERS INC. Comparative Balance Sheets December 31 | | Assets | 2014 | 2013 | | Cash | $167,256 | $100,188 | | Accounts receivable | 181,746 | 78,660 | | Inventory | 232,875 | 212,900 | | Prepaid expenses | 58,788 | 53,820 | | Long-term investments | 285,660 | 225,630 | | Plant assets | 589,950 | 501,975 | | Accumulated depreciation | (103,500 | ) | (107,640 | ) | | Total | $1,412,775 | | $1,065,533 | | | Liabilities and Stockholders Equity | | Accounts payable | $211,140 | $139,311 | | Accrued expenses payable | 34,155 | 43,470 | | Bonds payable | 227,700 | 302,220 | | Common stock | 455,400 | 362,250 | | Retained earnings | 484,380 | | 218,282 | | | Total | $1,412,775 | | $1,065,533 | | | ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 | | Sales revenue | $804,112 | | Less: | | Cost of goods sold | $280,402 | | Operating expenses, excluding depreciation | 25,689 | | Depreciation expense | 96,255 | | Income taxes | 56,470 | | Interest expense | 9,791 | | Loss on disposal of plant assets | 15,525 | 484,132 | | Net income | $319,980 | Additional information: | 1. | New plant assets costing $207,000were purchased for cash during the year. | | 2. | Old plant assets having an original cost of $119,025and accumulated depreciation of $100,395were sold for $3,105cash. | | 3. | Bonds payable matured and were paid off at face value for cash. | | 4. | A cash dividend of $53,882was 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 | | Purchase of Plant AssetsSale of Common StockSale of Plant AssetsPayment of Cash DividendsPurchase of InvestmentsCash Receipts from CustomersRedemption of BondsTo SuppliersFor Operating ExpensesFor Income TaxesFor Interest | $ | | AddLess: Sale of Plant AssetsSale of Common StockFor Operating ExpensesPayment of Cash DividendsRedemption of BondsCash PaymentsFor InterestCash Receipts from CustomersPurchase of Plant AssetsTo SuppliersFor Income TaxesPurchase of Investments | | Sale of Plant AssetsFor InterestTo SuppliersPurchase of InvestmentsFor Income TaxesFor Operating ExpensesPurchase of Plant AssetsCash PaymentsPayment of Cash DividendsRedemption of BondsCash Receipts from CustomersSale of Common Stock | $ | | To SuppliersPurchase of InvestmentsPurchase of Plant AssetsFor Operating ExpensesCash Receipts from CustomersSale of Common StockFor Income TaxesRedemption of BondsPayment of Cash DividendsSale of Plant AssetsCash PaymentsFor Interest | | | Cash PaymentsFor Income TaxesRedemption of BondsPurchase of InvestmentsTo SuppliersSale of Plant AssetsPayment of Cash DividendsFor Operating ExpensesCash Receipts from CustomersFor InterestPurchase of Plant AssetsSale of Common Stock | | | For InterestCash PaymentsSale of Plant AssetsCash Receipts from CustomersTo SuppliersPurchase of InvestmentsPayment of Cash DividendsFor Income TaxesPurchase of Plant AssetsFor Operating ExpensesSale of Common StockRedemption of Bonds | | | | | 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 InvestmentsCash PaymentsFor Operating ExpensesFor InterestFor Income TaxesPayment of Cash DividendsRedemption of BondsSale of Plant AssetsCash Receipts from CustomersTo SuppliersSale of Common StockPurchase of Plant Assets | | | For Operating ExpensesFor Income TaxesPurchase of InvestmentsPayment of Cash DividendsPurchase of Plant AssetsSale of Common StockSale of Plant AssetsCash Receipts from CustomersRedemption of BondsTo SuppliersFor InterestCash Payments | | | Purchase of InvestmentsPurchase of Plant AssetsTo SuppliersPayment of Cash DividendsRedemption of BondsSale of Plant AssetsFor Income TaxesCash PaymentsCash Receipts from CustomersFor Operating ExpensesFor InterestSale of Common Stock | | | 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 | | Sale of Common StockCash Receipts from CustomersPayment of Cash DividendsTo SuppliersCash PaymentsFor Income TaxesFor Operating ExpensesFor InterestSale of Plant AssetsRedemption of BondsPurchase of InvestmentsPurchase of Plant Assets | | | Sale of Plant AssetsFor Operating ExpensesRedemption of BondsCash PaymentsTo SuppliersPurchase of InvestmentsSale of Common StockFor InterestPurchase of Plant AssetsPayment of Cash DividendsFor Income TaxesCash Receipts from Customers | | | Cash Receipts from CustomersFor Income TaxesSale of Plant AssetsPurchase of InvestmentsPurchase of Plant AssetsFor Operating ExpensesSale of Common StockFor InterestPayment of Cash DividendsRedemption of BondsTo SuppliersCash Payments | | | 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 | 2013 | | Cash | $167,256 | $100,188 | | Accounts receivable | 181,746 | 78,660 | | Inventory | 232,875 | 212,900 | | Prepaid expenses | 58,788 | 53,820 | | Long-term investments | 285,660 | 225,630 | | Plant assets | 589,950 | 501,975 | | Accumulated depreciation | (103,500 | ) | (107,640 | ) | | Total | $1,412,775 | | $1,065,533 | | | Liabilities and Stockholders Equity | | Accounts payable | $211,140 | $139,311 | | Accrued expenses payable | 34,155 | 43,470 | | Bonds payable | 227,700 | 302,220 | | Common stock | 455,400 | 362,250 | | Retained earnings | 484,380 | | 218,282 | | | Total | $1,412,775 | | $1,065,533 | | | ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 | | Sales revenue | $804,112 | | Less: | | Cost of goods sold | $280,402 | | Operating expenses, excluding depreciation | 25,689 | | Depreciation expense | 96,255 | | Income taxes | 56,470 | | Interest expense | 9,791 | | Loss on disposal of plant assets | 15,525 | 484,132 | | Net income | $319,980 | Additional information: | 1. | New plant assets costing $207,000were purchased for cash during the year. | | 2. | Old plant assets having an original cost of $119,025and accumulated depreciation of $100,395were sold for $3,105cash. | | 3. | Bonds payable matured and were paid off at face value for cash. | | 4. | A cash dividend of $53,882was 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 | | Purchase of Plant AssetsSale of Common StockSale of Plant AssetsPayment of Cash DividendsPurchase of InvestmentsCash Receipts from CustomersRedemption of BondsTo SuppliersFor Operating ExpensesFor Income TaxesFor Interest | $ | | AddLess: Sale of Plant AssetsSale of Common StockFor Operating ExpensesPayment of Cash DividendsRedemption of BondsCash PaymentsFor InterestCash Receipts from CustomersPurchase of Plant AssetsTo SuppliersFor Income TaxesPurchase of Investments | | Sale of Plant AssetsFor InterestTo SuppliersPurchase of InvestmentsFor Income TaxesFor Operating ExpensesPurchase of Plant AssetsCash PaymentsPayment of Cash DividendsRedemption of BondsCash Receipts from CustomersSale of Common Stock | $ | | To SuppliersPurchase of InvestmentsPurchase of Plant AssetsFor Operating ExpensesCash Receipts from CustomersSale of Common StockFor Income TaxesRedemption of BondsPayment of Cash DividendsSale of Plant AssetsCash PaymentsFor Interest | | | Cash PaymentsFor Income TaxesRedemption of BondsPurchase of InvestmentsTo SuppliersSale of Plant AssetsPayment of Cash DividendsFor Operating ExpensesCash Receipts from CustomersFor InterestPurchase of Plant AssetsSale of Common Stock | | | For InterestCash PaymentsSale of Plant AssetsCash Receipts from CustomersTo SuppliersPurchase of InvestmentsPayment of Cash DividendsFor Income TaxesPurchase of Plant AssetsFor Operating ExpensesSale of Common StockRedemption of Bonds | | | | | 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 InvestmentsCash PaymentsFor Operating ExpensesFor InterestFor Income TaxesPayment of Cash DividendsRedemption of BondsSale of Plant AssetsCash Receipts from CustomersTo SuppliersSale of Common StockPurchase of Plant Assets | | | For Operating ExpensesFor Income TaxesPurchase of InvestmentsPayment of Cash DividendsPurchase of Plant AssetsSale of Common StockSale of Plant AssetsCash Receipts from CustomersRedemption of BondsTo SuppliersFor InterestCash Payments | | | Purchase of InvestmentsPurchase of Plant AssetsTo SuppliersPayment of Cash DividendsRedemption of BondsSale of Plant AssetsFor Income TaxesCash PaymentsCash Receipts from CustomersFor Operating ExpensesFor InterestSale of Common Stock | | | 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 | | Sale of Common StockCash Receipts from CustomersPayment of Cash DividendsTo SuppliersCash PaymentsFor Income TaxesFor Operating ExpensesFor InterestSale of Plant AssetsRedemption of BondsPurchase of InvestmentsPurchase of Plant Assets | | | Sale of Plant AssetsFor Operating ExpensesRedemption of BondsCash PaymentsTo SuppliersPurchase of InvestmentsSale of Common StockFor InterestPurchase of Plant AssetsPayment of Cash DividendsFor Income TaxesCash Receipts from Customers | | | Cash Receipts from CustomersFor Income TaxesSale of Plant AssetsPurchase of InvestmentsPurchase of Plant AssetsFor Operating ExpensesSale of Common StockFor InterestPayment of Cash DividendsRedemption of BondsTo SuppliersCash Payments | | | 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 | $ | |
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| Problem 12-10A Condensed financial data of Odgers Inc. follow. | ODGERS INC. Comparative Balance Sheets December 31 | | Assets | 2014 | 2013 | | Cash | $167,256 | $100,188 | | Accounts receivable | 181,746 | 78,660 | | Inventory | 232,875 | 212,900 | | Prepaid expenses | 58,788 | 53,820 | | Long-term investments | 285,660 | 225,630 | | Plant assets | 589,950 | 501,975 | | Accumulated depreciation | (103,500 | ) | (107,640 | ) | | Total | $1,412,775 | | $1,065,533 | | | Liabilities and Stockholders Equity | | Accounts payable | $211,140 | $139,311 | | Accrued expenses payable | 34,155 | 43,470 | | Bonds payable | 227,700 | 302,220 | | Common stock | 455,400 | 362,250 | | Retained earnings | 484,380 | | 218,282 | | | Total | $1,412,775 | | $1,065,533 | | | ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 | | Sales revenue | $804,112 | | Less: | | Cost of goods sold | $280,402 | | Operating expenses, excluding depreciation | 25,689 | | Depreciation expense | 96,255 | | Income taxes | 56,470 | | Interest expense | 9,791 | | Loss on disposal of plant assets | 15,525 | 484,132 | | Net income | $319,980 | Additional information: | 1. | New plant assets costing $207,000were purchased for cash during the year. | | 2. | Old plant assets having an original cost of $119,025and accumulated depreciation of $100,395were sold for $3,105cash. | | 3. | Bonds payable matured and were paid off at face value for cash. | | 4. | A cash dividend of $53,882was 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 | | Purchase of Plant AssetsSale of Common StockSale of Plant AssetsPayment of Cash DividendsPurchase of InvestmentsCash Receipts from CustomersRedemption of BondsTo SuppliersFor Operating ExpensesFor Income TaxesFor Interest | $ | | AddLess: Sale of Plant AssetsSale of Common StockFor Operating ExpensesPayment of Cash DividendsRedemption of BondsCash PaymentsFor InterestCash Receipts from CustomersPurchase of Plant AssetsTo SuppliersFor Income TaxesPurchase of Investments | | Sale of Plant AssetsFor InterestTo SuppliersPurchase of InvestmentsFor Income TaxesFor Operating ExpensesPurchase of Plant AssetsCash PaymentsPayment of Cash DividendsRedemption of BondsCash Receipts from CustomersSale of Common Stock | $ | | To SuppliersPurchase of InvestmentsPurchase of Plant AssetsFor Operating ExpensesCash Receipts from CustomersSale of Common StockFor Income TaxesRedemption of BondsPayment of Cash DividendsSale of Plant AssetsCash PaymentsFor Interest | | | Cash PaymentsFor Income TaxesRedemption of BondsPurchase of InvestmentsTo SuppliersSale of Plant AssetsPayment of Cash DividendsFor Operating ExpensesCash Receipts from CustomersFor InterestPurchase of Plant AssetsSale of Common Stock | | | For InterestCash PaymentsSale of Plant AssetsCash Receipts from CustomersTo SuppliersPurchase of InvestmentsPayment of Cash DividendsFor Income TaxesPurchase of Plant AssetsFor Operating ExpensesSale of Common StockRedemption of Bonds | | | | | 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 InvestmentsCash PaymentsFor Operating ExpensesFor InterestFor Income TaxesPayment of Cash DividendsRedemption of BondsSale of Plant AssetsCash Receipts from CustomersTo SuppliersSale of Common StockPurchase of Plant Assets | | | For Operating ExpensesFor Income TaxesPurchase of InvestmentsPayment of Cash DividendsPurchase of Plant AssetsSale of Common StockSale of Plant AssetsCash Receipts from CustomersRedemption of BondsTo SuppliersFor InterestCash Payments | | | Purchase of InvestmentsPurchase of Plant AssetsTo SuppliersPayment of Cash DividendsRedemption of BondsSale of Plant AssetsFor Income TaxesCash PaymentsCash Receipts from CustomersFor Operating ExpensesFor InterestSale of Common Stock | | | | |
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