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	$

Question 4 Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 Cash $ 80,800 $ 48,400 87,800 38,000 112,500 102,850 Accounts receivable Inventory Prepaid expenses 2013 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 $ 102,000 $ 67,300 16,500 21,000 Bonds payable 110,000 146,000 Common stock 220,000 175,000 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Retained earnings Total 234,000 105,450 $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 Net income 233,880 $ 154,580 Additional information: 1. New plant assets costing $100,000 were purchased for cash during the year. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were 2. sold for $1,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $26,030 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 $ : $ $