Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31 |
| Assets |
2014 |
2013 |
| Cash |
$99,384 |
$59,532 |
| Accounts receivable |
107,994 |
46,740 |
| Inventory |
138,375 |
126,506 |
| Prepaid expenses |
34,932 |
31,980 |
| Long-term investments |
169,740 |
134,070 |
| Plant assets |
350,550 |
298,275 |
| Accumulated depreciation |
(61,500) |
(63,960) |
|
|
| Total |
$839,475 |
$633,143 |
|
|
| Liabilities and Stockholders' Equity |
| Accounts payable |
$125,460 |
$82,779 |
| Accrued expenses payable |
20,295 |
25,830 |
| Bonds payable |
135,300 |
179,580 |
| Common stock |
270,600 |
215,250 |
| Retained earnings |
287,820 |
129,704 |
|
|
| Total |
$839,475 |
$633,143 |
|
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014 |
| Sales revenue |
$477,806 |
| Less: |
| Cost of goods sold |
$166,616 |
| Operating expenses, excluding depreciation |
15,264 |
| Depreciation expense |
57,195 |
| Income tax expense |
33,554 |
| Interest expense |
5,818 |
| Loss on disposal of plant assets |
9,225 |
287,672 |
| Net income |
$190,134 |
Additional information:
| 1. |
New plant assets costing $123,000 were purchased for cash during the year. |
| 2. |
Old plant assets having an original cost of $70,725 and accumulated depreciation of $59,655 were sold for $1,845 cash. |
| 3. |
Bonds payable matured and were paid off at face value for cash. |
| 4. |
A cash dividend of $32,018 was declared and paid during the year. |
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)