Question 4 Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets
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Question 4
Condensed financial data of Odgers Inc. follow.
ODGERS INC. Comparative Balance Sheets December 31 | ||||
Assets | 2014 | 2013 | ||
Cash | $80,800 | $48,400 | ||
Accounts receivable | 87,800 | 38,000 | ||
Inventory | 112,500 | 102,850 | ||
Prepaid expenses | 28,400 | 26,000 | ||
Long-term investments | 138,000 | 109,000 | ||
Plant assets | 285,000 | 242,500 | ||
Accumulated depreciation | (50,000 | ) | (52,000 | ) |
Total | $682,500 | $514,750 | ||
Liabilities and Stockholders? Equity | ||||
Accounts payable | $102,000 | $67,300 | ||
Accrued expenses payable | 16,500 | 21,000 | ||
Bonds payable | 110,000 | 146,000 | ||
Common stock | 220,000 | 175,000 | ||
Retained earnings | 234,000 | 105,450 | ||
Total | $682,500 | $514,750 |
ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 | ||
Sales revenue | $388,460 | |
Less: | ||
Cost of goods sold | $135,460 | |
Operating expenses, excluding depreciation | 12,410 | |
Depreciation expense | 46,500 | |
Income taxes | 27,280 | |
Interest expense | 4,730 | |
Loss on disposal of plant assets | 7,500 | 233,880 |
Net income | $154,580 |
Additional information:
1. | New plant assets costing $100,000were purchased for cash during the year. |
2. | Old plant assets having an original cost of $57,500and accumulated depreciation of $48,500were sold for $1,500cash. |
3. | Bonds payable matured and were paid off at face value for cash. |
4. | A cash dividend of $26,030was 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 AssetsFor InterestTo SuppliersSale of Common StockPayment of Cash DividendsSale of Plant AssetsPurchase of InvestmentsRedemption of BondsCash Receipts from CustomersFor Income TaxesFor Operating Expenses | $ |
AddLess: Payment of Cash DividendsCash PaymentsPurchase of InvestmentsPurchase of Plant AssetsTo SuppliersCash Receipts from CustomersFor Operating ExpensesSale of Common StockFor Income TaxesRedemption of BondsFor InterestSale of Plant Assets | |
For InterestRedemption of BondsSale of Plant AssetsFor Operating ExpensesSale of Common StockFor Income TaxesTo SuppliersPurchase of InvestmentsPayment of Cash DividendsCash PaymentsCash Receipts from CustomersPurchase of Plant Assets | $ |
For InterestSale of Plant AssetsTo SuppliersFor Income TaxesPurchase of InvestmentsSale of Common StockPurchase of Plant AssetsFor Operating ExpensesPayment of Cash DividendsRedemption of BondsCash PaymentsCash Receipts from Customers | |
Sale of Common StockCash PaymentsFor Income TaxesCash Receipts from CustomersFor InterestTo SuppliersSale of Plant AssetsPayment of Cash DividendsFor Operating ExpensesPurchase of InvestmentsPurchase of Plant AssetsRedemption of Bonds | |
Sale of Plant AssetsPurchase of InvestmentsFor Income TaxesPayment of Cash DividendsFor InterestPurchase of Plant AssetsSale of Common StockFor Operating ExpensesRedemption of BondsCash PaymentsCash Receipts from CustomersTo Suppliers | |
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 | |
Redemption of BondsCash Receipts from CustomersPurchase of Plant AssetsTo SuppliersSale of Plant AssetsFor InterestFor Income TaxesPurchase of InvestmentsFor Operating ExpensesPayment of Cash DividendsSale of Common StockCash Payments | |
Sale of Common StockCash Receipts from CustomersFor InterestPurchase of InvestmentsSale of Plant AssetsFor Operating ExpensesPurchase of Plant AssetsTo SuppliersPayment of Cash DividendsRedemption of BondsCash PaymentsFor Income Taxes | |
Redemption of BondsFor Income TaxesFor Operating ExpensesCash Receipts from CustomersFor InterestTo SuppliersSale of Common StockSale of Plant AssetsCash PaymentsPayment of Cash DividendsPurchase 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 | |
Sale of Common StockPayment of Cash DividendsRedemption of BondsCash Receipts from CustomersTo SuppliersCash PaymentsSale of Plant AssetsFor InterestPurchase of InvestmentsPurchase of Plant AssetsFor Income TaxesFor Operating Expenses | |
Cash Receipts from CustomersRedemption of BondsPurchase of InvestmentsCash PaymentsTo SuppliersFor Income TaxesPayment of Cash DividendsPurchase of Plant AssetsFor Operating ExpensesSale of Common StockFor InterestSale of Plant Assets | |
Payment of Cash DividendsRedemption of BondsFor Operating ExpensesCash PaymentsFor InterestCash Receipts from CustomersTo SuppliersFor Income TaxesSale of Plant AssetsPurchase of InvestmentsPurchase of Plant AssetsSale 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 | |
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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ISBN: 978-1118128169
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Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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