Problem 12-10A Condensed financial data of Odgers Inc. follow. ODGERS INC. Compa
ID: 2446671 • Letter: P
Question
Problem 12-10A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
$ 163,216
$ 97,768
177,356
76,760
227,250
207,757
57,368
52,520
278,760
220,180
575,700
489,850
(101,000
)
(105,040
)
$1,378,650
$1,039,795
Liabilities and Stockholders’ Equity
$ 206,040
$ 135,946
33,330
42,420
222,200
294,920
444,400
353,500
472,680
213,009
$1,378,650
$1,039,795
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
$784,689
$273,629
25,068
93,930
55,106
9,555
15,150
472,438
$ 312,251
Additional information:
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
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash$ 163,216
$ 97,768
Accounts receivable177,356
76,760
Inventory227,250
207,757
Prepaid expenses57,368
52,520
Long-term investments278,760
220,180
Plant assets575,700
489,850
Accumulated depreciation(101,000
)
(105,040
)
Total$1,378,650
$1,039,795
Liabilities and Stockholders’ Equity
Accounts payable$ 206,040
$ 135,946
Accrued expenses payable33,330
42,420
Bonds payable222,200
294,920
Common stock444,400
353,500
Retained earnings472,680
213,009
Total$1,378,650
$1,039,795
Explanation / Answer
Cash Receipts from Customers = + Net Sales + Beginning Accounts Receivable Ending Accounts Receivable Cash Payments to Suppliers = + Purchases + Ending Inventory Beginning Inventory + Beginning Accounts Payable Ending Accounts Payable Cash Payments to Employees = + Beginning Salaries Payable Ending Salaries Payable + Salaries Expense Cash Payments for Purchase of Prepaid Assets = + Ending Prepaid Rent, Prepaid Insurance etc. + Expired Rent, Expired Insurance etc. Beginning Prepaid Rent, Prepaid Insurance etc. Interest Payments = + Beginning Interest Payable Ending Interest Payable + Interest Expense Income Tax Payments = + Beginning Income Tax Payable Ending Income Tax Payable + Income Tax Expense Cash receipts from customers Net sales 784,689 Add beginning accout receivable 76,760 Less ending wccount receivable (177,356) Total 684,093 Cash Payments to Suppliers = AddPurchases 273,629 AddEnding Inventory 227,250 LessBeginning Inventory (207,757) AddBeginning Accounts Payable 135,946 LessEnding Accounts Payable (206,040) Total 223,028 Cash Payments for Purchase of Prepaid Assets = Add Ending Prepaid Rent, Prepaid Insurance etc. 57,368 Less Beginning Prepaid Rent, Prepaid Insurance etc. (52,520) Total 4,848 Interest expenses 9,555 Income tax 55,106 Cash flow 391,556
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