Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance
ID: 2496874 • Letter: C
Question
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
$ 189,880
$ 113,740
206,330
89,300
264,375
241,698
66,740
61,100
324,300
256,150
669,750
569,875
(117,500
)
(122,200
)
$1,603,875
$1,209,663
Liabilities and Stockholders’ Equity
$ 239,700
$ 158,155
38,775
49,350
258,500
343,100
517,000
411,250
549,900
247,808
$1,603,875
$1,209,663
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
$912,881
$318,331
29,164
109,275
64,108
11,116
17,625
549,619
$ 363,262
Additional information:
Prepare a statement of cash flows using the indirect method.
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
$
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash$ 189,880
$ 113,740
Accounts receivable206,330
89,300
Inventory264,375
241,698
Prepaid expenses66,740
61,100
Long-term investments324,300
256,150
Plant assets669,750
569,875
Accumulated depreciation(117,500
)
(122,200
)
Total$1,603,875
$1,209,663
Liabilities and Stockholders’ Equity
Accounts payable$ 239,700
$ 158,155
Accrued expenses payable38,775
49,350
Bonds payable258,500
343,100
Common stock517,000
411,250
Retained earnings549,900
247,808
Total$1,603,875
$1,209,663
Explanation / Answer
Cash Flows from Operating Activities<br>
Net Income
363262
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities<br>
Depreciation Expense
109275
Increase in Accounts Payable
81545
Loss on Disposal of Plant Assets
17625
Increase in Accounts Receivable
- 117030
Increase in Inventory
-22677
Increase in Prepaid Expenses
-5640
Decrease in Accrued Expenses Payable
-10575
Net Cash Provided by Operating Activities<br>
415785
Cash Flows from Investing Activities
Sale of Plant Assets
3525
Purchase of Investments
-68150
Purchase of Plant Assets
-235000
Net Cash used by Investing Activities<br>
-299625
Cash Flows from Financing Activities
Issue of Common stock
105750
Payment to bond payable
-84600
Dividend paid
-61170
Net Cash used by financing Activities<br>
-40020
Net Increase in Cash<br>
76140
Cash at Beginning of Period<br>
113740
Cash at End of Period
189880
Cash Flows from Operating Activities<br>
Net Income
363262
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities<br>
Depreciation Expense
109275
Increase in Accounts Payable
81545
Loss on Disposal of Plant Assets
17625
Increase in Accounts Receivable
- 117030
Increase in Inventory
-22677
Increase in Prepaid Expenses
-5640
Decrease in Accrued Expenses Payable
-10575
Net Cash Provided by Operating Activities<br>
415785
Cash Flows from Investing Activities
Sale of Plant Assets
3525
Purchase of Investments
-68150
Purchase of Plant Assets
-235000
Net Cash used by Investing Activities<br>
-299625
Cash Flows from Financing Activities
Issue of Common stock
105750
Payment to bond payable
-84600
Dividend paid
-61170
Net Cash used by financing Activities<br>
-40020
Net Increase in Cash<br>
76140
Cash at Beginning of Period<br>
113740
Cash at End of Period
189880
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