Problem 12-10A Condensed financial data of Odgers Inc. follow.
| ODGERS INC. Comparative Balance Sheets December 31 |
| Assets |
2014 |
2013 |
| Cash |
mce_markernbsp;185,032 |
mce_markernbsp;110,836 |
| Accounts receivable |
201,062 |
87,020 |
| Inventory |
257,625 |
235,527 |
| Prepaid expenses |
65,036 |
59,540 |
| Long-term investments |
316,020 |
249,610 |
| Plant assets |
652,650 |
555,325 |
| Accumulated depreciation |
(114,500) |
(119,080) |
|
|
| Total |
$1,562,925 |
$1,178,778 |
|
|
| Liabilities and Stockholders' Equity |
| Accounts payable |
mce_markernbsp;233,580 |
mce_markernbsp;154,117 |
| Accrued expenses payable |
37,785 |
48,090 |
| Bonds payable |
251,900 |
334,340 |
| Common stock |
503,800 |
400,750 |
| Retained earnings |
535,860 |
241,481 |
|
|
| Total |
$1,562,925 |
$1,178,778 |
|
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014 |
| Sales revenue |
$889,573 |
| Less: |
| Cost of goods sold |
$310,203 |
| Operating expenses, excluding depreciation |
28,419 |
| Depreciation expense |
106,485 |
| Income taxes |
62,471 |
| Interest expense |
10,832 |
| Loss on disposal of plant assets |
17,175 |
535,585 |
| Net income |
$353,988 |
Additional information:
1. New plant assets costing $229,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $131,675 and accumulated depreciation of $111,065 were sold for $3,435 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $59,609 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).)