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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 receivable

206,330

89,300

Inventory

264,375

241,698

Prepaid expenses

66,740

61,100

Long-term investments

324,300

256,150

Plant assets

669,750

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 payable

38,775

49,350

Bonds payable

258,500

343,100

Common stock

517,000

411,250

Retained earnings

549,900

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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