Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 101,000 $ 60,500 Accounts receivable 109,750 47,500 Inventory 140,625 128,563 Prepaid expenses 35,500 32,500 Long-term investments 172,500 136,250 Plant assets 356,250 303,125 Accumulated depreciation (62,500 ) (65,000 ) Total $853,125 $643,438 Liabilities and Stockholders Equity Accounts payable $ 127,500 $ 84,125 Accrued expenses payable 20,625 26,250 Bonds payable 137,500 182,500 Common stock 275,000 218,750 Retained earnings 292,500 131,813 Total $853,125 $643,438 ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 Sales revenue $485,575 Less: Cost of goods sold $169,325 Operating expenses, excluding depreciation 15,513 Depreciation expense 58,125 Income tax expense 34,100 Interest expense 5,913 Loss on disposal of plant assets 9,375 292,351 Net income $ 193,224 Additional information: 1. New plant assets costing $125,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $71,875 and accumulated depreciation of $60,625 were sold for $1,875 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $32,537 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 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 Inventory Net Income Purchase of Plant Assets Increase in Accrued Expenses Payable Decrease in Prepaid Expenses Decrease in Accrued Expenses Payable Depreciation Expense Increase in Accounts Receivable Increase in Accounts Payable Redemption of Bonds Payment of Cash Dividends Decrease in Accounts Payable Loss on Disposal of Plant Assets Increase in Prepaid Expenses Increase in Inventory Decrease in Accounts Receivable Sale of Plant Assets Purchase of Investments Sale of Common Stock $ 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 Net Income Decrease in Accounts Payable Increase in Prepaid Expenses Depreciation Expense Decrease in Prepaid Expenses Purchase of Plant Assets Increase in Inventory Redemption of Bonds Increase in Accounts Payable Loss on Disposal of Plant Assets Sale of Common Stock Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Decrease in Inventory Decrease in Accounts Receivable Increase in Accounts Receivable Purchase of Investments Sale of Plant Assets Payment of Cash Dividends $ Increase in Accounts Payable Purchase of Plant Assets Loss on Disposal of Plant Assets Depreciation Expense Sale of Common Stock Net Income Payment of Cash Dividends Decrease in Accounts Payable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Decrease in Accounts Receivable Increase in Prepaid Expenses Increase in Accounts Receivable Sale of Plant Assets Decrease in Prepaid Expenses Increase in Inventory Decrease in Inventory Purchase of Investments Redemption of Bonds Decrease in Inventory Redemption of Bonds Increase in Accrued Expenses Payable Payment of Cash Dividends Purchase of Plant Assets Purchase of Investments Increase in Accounts Receivable Depreciation Expense Sale of Common Stock Net Income Sale of Plant Assets Increase in Accounts Payable Increase in Prepaid Expenses Decrease in Accounts Payable Decrease in Accounts Receivable Loss on Disposal of Plant Assets Decrease in Accrued Expenses Payable Decrease in Prepaid Expenses Increase in Inventory Increase in Prepaid Expenses Decrease in Prepaid Expenses Purchase of Investments Increase in Inventory Decrease in Accounts Payable Decrease in Inventory Increase in Accounts Receivable Loss on Disposal of Plant Assets Decrease in Accrued Expenses Payable Decrease in Accounts Receivable Increase in Accrued Expenses Payable Sale of Plant Assets Purchase of Plant Assets Sale of Common Stock Payment of Cash Dividends Net Income Redemption of Bonds Depreciation Expense Increase in Accounts Payable Net Income Increase in Accounts Payable Increase in Inventory Decrease in Accounts Receivable Purchase of Investments Increase in Accrued Expenses Payable Sale of Common Stock Depreciation Expense Sale of Plant Assets Purchase of Plant Assets Decrease in Accrued Expenses Payable Decrease in Prepaid Expenses Decrease in Inventory Payment of Cash Dividends Increase in Accounts Receivable Redemption of Bonds Decrease in Accounts Payable Loss on Disposal of Plant Assets Increase in Prepaid Expenses Sale of Common Stock Purchase of Plant Assets Payment of Cash Dividends Sale of Plant Assets Decrease in Prepaid Expenses Increase in Inventory Decrease in Inventory Redemption of Bonds Increase in Accounts Receivable Decrease in Accrued Expenses Payable Net Income Increase in Accrued Expenses Payable Depreciation Expense Decrease in Accounts Payable Decrease in Accounts Receivable Increase in Accounts Payable Loss on Disposal of Plant Assets Increase in Prepaid Expenses Purchase of Investments Depreciation Expense Increase in Accounts Payable Purchase of Plant Assets Net Income Decrease in Inventory Increase in Inventory Loss on Disposal of Plant Assets Decrease in Accounts Payable Increase in Accounts Receivable Decrease in Accounts Receivable Payment of Cash Dividends Sale of Common Stock Increase in Accrued Expenses Payable Purchase of Investments Sale of Plant Assets Redemption of Bonds Decrease in Accrued Expenses Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net 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 Redemption of Bonds Net Income Increase in Accounts Receivable Decrease in Inventory Depreciation Expense Increase in Accrued Expenses Payable Payment of Cash Dividends Sale of Common Stock Increase in Accounts Payable Increase in Prepaid Expenses Decrease in Accounts Payable Sale of Plant Assets Purchase of Investments Loss on Disposal of Plant Assets Decrease in Accrued Expenses Payable Decrease in Prepaid Expenses Increase in Inventory Decrease in Accounts Receivable Purchase of Plant Assets Decrease in Accounts Payable Net Income Decrease in Accrued Expenses Payable Decrease in Prepaid Expenses Sale of Plant Assets Increase in Inventory Depreciation Expense Loss on Disposal of Plant Assets Increase in Accounts Receivable Increase in Accrued Expenses Payable Purchase of Investments Redemption of Bonds Increase in Prepaid Expenses Decrease in Inventory Decrease in Accounts Receivable Increase in Accounts Payable Purchase of Plant Assets Sale of Common Stock Payment of Cash Dividends Decrease in Prepaid Expenses Increase in Accounts Receivable Decrease in Accounts Payable Increase in Inventory Purchase of Plant Assets Net Income Decrease in Accounts Receivable Sale of Plant Assets Payment of Cash Dividends Purchase of Investments Redemption of Bonds Sale of Common Stock Depreciation Expense Increase in Prepaid Expenses Increase in Accounts Payable Decrease in Accrued Expenses Payable Decrease in Inventory Loss on Disposal of Plant Assets Increase in Accrued Expenses Payable Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net 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 Receivable Decrease in Accounts Receivable Increase in Accounts Payable Sale of Plant Assets Depreciation Expense Sale of Common Stock Decrease in Accounts Payable Loss on Disposal of Plant Assets Decrease in Accrued Expenses Payable Purchase of Investments Decrease in Prepaid Expenses Purchase of Plant Assets Payment of Cash Dividends Redemption of Bonds Increase in Accrued Expenses Payable Net Income Increase in Prepaid Expenses Increase in Inventory Decrease in Inventory Increase in Prepaid Expenses Decrease in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Inventory Decrease in Inventory Depreciation Expense Increase in Accounts Receivable Decrease in Prepaid Expenses Increase in Accounts Payable Decrease in Accounts Payable Sale of Plant Assets Purchase of Plant Assets Loss on Disposal of Plant Assets Purchase of Investments Redemption of Bonds Sale of Common Stock Payment of Cash Dividends Net Income Increase in Accrued Expenses Payable Decrease in Inventory Purchase of Investments Increase in Inventory Net Income Payment of Cash Dividends Decrease in Accounts Payable Increase in Accrued Expenses Payable Sale of Plant Assets Increase in Prepaid Expenses Increase in Accounts Receivable Purchase of Plant Assets Decrease in Prepaid Expenses Redemption of Bonds Sale of Common Stock Depreciation Expense Increase in Accounts Payable Loss on Disposal of Plant Assets Decrease in Accrued Expenses Payable Decrease in Accounts Receivable Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net 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 $ Link to Text