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Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 2013 Cash$179,376 $107,448 Accounts receivable194,916 84,360 Inventory249,750

Problem 12-9A

Condensed financial data of Odgers Inc. follow.

ODGERS INC.

Comparative Balance Sheets

December 31

Assets

2014

2013

Cash$179,376

$107,448

Accounts receivable194,916

84,360

Inventory249,750

228,327

Prepaid expenses63,048

57,720

Long-term investments306,360

241,980

Plant assets632,700

538,350

Accumulated depreciation(111,000

)

(115,440

)

Total$1,515,150

$1,142,745

Liabilities and Stockholders' Equity

Accounts payable$226,440

$149,406

Accrued expenses payable36,630

46,620

Bonds payable244,200

324,120

Common stock488,400

388,500

Retained earnings519,480

234,099

Total$1,515,150

$1,142,745

ODGERS INC.

Income Statement Data

For the Year Ended December 31, 2014

Sales revenue$862,381

Less:Cost of goods sold$300,721

Operating expenses, excluding depreciation27,550

Depreciation expense103,230

Income tax expense60,562

Interest expense10,501

Loss on disposal of plant assets16,650

519,214

Net income$343,167

Additional information:

1.New plant assets costing $222,000were purchased for cash during the year.2.Old plant assets having an original cost of $127,650and accumulated depreciation of $107,670were sold for $3,330cash.3.Bonds payable matured and were paid off at face value for cash.4.A cash dividend of $57,786was declared and paid during the year.

Prepar 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

Net IncomeSale of Common StockLoss on Disposal of Plant AssetsDepreciation ExpensePurchase of InvestmentsDecrease in Accounts PayableIncrease in Prepaid ExpensesRedemption of BondsIncrease in Accounts PayableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Accounts ReceivableIncrease in InventoryIncrease in Accrued Expenses PayableSale of Plant AssetsIncrease in Accounts ReceivablePurchase of Plant AssetsPayment of Cash DividendsDecrease in Prepaid Expenses

Adjustments to reconcile net income to

Increase in Accrued Expenses PayableSale of Plant AssetsDepreciation ExpensePurchase of InvestmentsIncrease in Accounts ReceivableIncrease in InventoryPurchase of Plant AssetsDecrease in Accrued Expenses PayableDecrease in Accounts PayableLoss on Disposal of Plant AssetsDecrease in Accounts ReceivableSale of Common StockPayment of Cash DividendsIncrease in Accounts PayableDecrease in InventoryDecrease in Prepaid ExpensesIncrease in Prepaid ExpensesRedemption of BondsNet Income

Increase in Accrued Expenses PayableIncrease in Accounts PayableIncrease in Prepaid ExpensesDecrease in Accrued Expenses PayableRedemption of BondsSale of Common StockLoss on Disposal of Plant AssetsDecrease in Prepaid ExpensesIncrease in Accounts ReceivableDecrease in InventoryIncrease in InventoryDepreciation ExpensePurchase of Plant AssetsDecrease in Accounts ReceivablePayment of Cash DividendsSale of Plant AssetsNet IncomePurchase of InvestmentsDecrease in Accounts Payable

Loss on Disposal of Plant AssetsDepreciation ExpenseDecrease in Accrued Expenses PayableIncrease in Accrued Expenses PayableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesDecrease in Accounts ReceivableIncrease in InventoryDecrease in InventorySale of Common StockRedemption of BondsIncrease in Accounts PayableDecrease in Accounts PayableIncrease in Accounts ReceivablePurchase of InvestmentsNet IncomeSale of Plant AssetsPurchase of Plant AssetsPayment of Cash Dividends

Increase in Accounts ReceivableDepreciation ExpensePurchase of Plant AssetsSale of Plant AssetsIncrease in Accounts PayableDecrease in Prepaid ExpensesIncrease in Prepaid ExpensesIncrease in InventoryDecrease in InventoryDecrease in Accounts PayablePayment of Cash DividendsPurchase of InvestmentsRedemption of BondsSale of Common StockDecrease in Accounts ReceivableNet IncomeLoss on Disposal of Plant AssetsDecrease in Accrued Expenses PayableIncrease in Accrued Expenses Payable

Depreciation ExpenseIncrease in Accounts PayableLoss on Disposal of Plant AssetsDecrease in Accounts PayableNet IncomePurchase of InvestmentsIncrease in Prepaid ExpensesPayment of Cash DividendsRedemption of BondsSale of Common StockPurchase of Plant AssetsDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accounts ReceivableSale of Plant AssetsDecrease in Accrued Expenses PayableIncrease in Accrued Expenses PayableDecrease in Prepaid ExpensesIncrease in Inventory

Sale of Common StockIncrease in Prepaid ExpensesDecrease in Accrued Expenses PayableRedemption of BondsPurchase of Plant AssetsDecrease in Accounts ReceivablePurchase of InvestmentsNet IncomeDepreciation ExpenseIncrease in Accrued Expenses PayableDecrease in Prepaid ExpensesIncrease in Accounts PayableSale of Plant AssetsIncrease in InventoryDecrease in InventoryDecrease in Accounts PayableIncrease in Accounts ReceivablePayment of Cash DividendsLoss on Disposal of Plant Assets

Loss on Disposal of Plant AssetsDepreciation ExpensePayment of Cash DividendsIncrease in InventoryIncrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in Accounts PayableIncrease in Accrued Expenses PayableRedemption of BondsSale of Plant AssetsPurchase of Plant AssetsNet IncomeIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesPurchase of InvestmentsIncrease in Accounts ReceivableDecrease in InventorySale of Common Stock

Purchase of Plant AssetsIncrease in Accrued Expenses PayableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesSale of Plant AssetsSale of Common StockRedemption of BondsIncrease in InventoryPayment of Cash DividendsNet IncomeDecrease in InventoryIncrease in Accounts ReceivableDecrease in Accrued Expenses PayableDepreciation ExpenseDecrease in Accounts ReceivablePurchase of InvestmentsIncrease in Accounts PayableLoss on Disposal of Plant AssetsDecrease in Accounts Payable

Decrease in Accrued Expenses PayableSale of Plant AssetsPurchase of InvestmentsIncrease in Prepaid ExpensesDepreciation ExpensePurchase of Plant AssetsDecrease in Accounts PayableLoss on Disposal of Plant AssetsRedemption of BondsIncrease in Accrued Expenses PayableDecrease in Accounts ReceivableSale of Common StockDecrease in Prepaid ExpensesIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in InventoryDecrease in InventoryPayment of Cash DividendsNet Income

Increase in Prepaid ExpensesDecrease in Prepaid ExpensesDecrease in Accrued Expenses PayableIncrease in Accounts ReceivableRedemption of BondsPurchase of Plant AssetsDepreciation ExpenseIncrease in Accrued Expenses PayableIncrease in Accounts PayableDecrease in Accounts PayableIncrease in InventoryNet IncomeLoss on Disposal of Plant AssetsDecrease in InventoryDecrease in Accounts ReceivableSale of Common StockSale of Plant AssetsPurchase of InvestmentsPayment of Cash Dividends

Decrease in InventoryDecrease in Accrued Expenses PayableIncrease in Prepaid ExpensesIncrease in Accounts ReceivableIncrease in Accrued Expenses PayablePurchase of Plant AssetsDecrease in Accounts ReceivableDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in InventoryPayment of Cash DividendsRedemption of BondsSale of Plant AssetsPurchase of InvestmentsLoss on Disposal of Plant AssetsSale of Common StockNet IncomeIncrease in Accounts PayableDecrease in Accounts Payable

Sale of Plant AssetsNet IncomeDecrease in Prepaid ExpensesDecrease in Accrued Expenses PayableIncrease in Prepaid ExpensesPurchase of InvestmentsIncrease in Accrued Expenses PayableDepreciation ExpensePurchase of Plant AssetsIncrease in Accounts PayableDecrease in InventoryIncrease in InventorySale of Common StockDecrease in Accounts PayableIncrease in Accounts ReceivableLoss on Disposal of Plant AssetsDecrease in Accounts ReceivablePayment of Cash DividendsRedemption of Bonds

Sale of Common StockSale of Plant AssetsDecrease in Accrued Expenses PayableDecrease in Accounts ReceivableIncrease in InventoryIncrease in Accrued Expenses PayablePurchase of InvestmentsRedemption of BondsIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesNet IncomeDecrease in InventoryPayment of Cash DividendsDepreciation ExpensePurchase of Plant AssetsIncrease in Accounts PayableDecrease in Accounts PayableIncrease in Accounts ReceivableLoss on Disposal of Plant Assets

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