Problem
Condensed financial data of Odgers Inc. follow.
| ODGERS INC. Comparative Balance Sheets December 31 |
| Assets |
2014 |
2013 |
| Cash |
mce_markernbsp;143,824 |
mce_markernbsp;86,152 |
| Accounts receivable |
156,284 |
67,640 |
| Inventory |
200,250 |
183,073 |
| Prepaid expenses |
50,552 |
46,280 |
| Long-term investments |
245,640 |
194,020 |
| Plant assets |
507,300 |
431,650 |
| Accumulated depreciation |
(89,000 |
) |
(92,560 |
) |
| Total |
$1,214,850 |
|
$916,255 |
|
| Liabilities and Stockholders' Equity |
| Accounts payable |
mce_markernbsp;181,560 |
mce_markernbsp;119,794 |
| Accrued expenses payable |
29,370 |
37,380 |
| Bonds payable |
195,800 |
259,880 |
| Common stock |
391,600 |
311,500 |
| Retained earnings |
416,520 |
|
187,701 |
|
| Total |
$1,214,850 |
|
$916,255 |
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014 |
| Sales revenue |
$691,459 |
| Less: |
| Cost of goods sold |
$241,119 |
| Operating expenses, excluding depreciation |
22,090 |
| Depreciation expense |
82,770 |
| Income taxes |
48,558 |
| Interest expense |
8,419 |
| Loss on disposal of plant assets |
13,350 |
416,306 |
| Net income |
$275,153 |
Additional information:
1. New plant assets costing $178,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $102,350 and accumulated depreciation of $86,330 were sold for $2,670 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $46,334 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).)