Problem
Condensed financial data of Odgers Inc. follow.
|
ODGERS INC.
Comparative Balance Sheets
December 31
|
|
Assets
|
2014
|
2013
|
|
Cash
|
$ 151,904
|
$ 90,992
|
|
Accounts receivable
|
165,064
|
71,440
|
|
Inventory
|
211,500
|
193,358
|
|
Prepaid expenses
|
53,392
|
48,880
|
|
Long-term investments
|
259,440
|
204,920
|
|
Plant assets
|
535,800
|
455,900
|
|
Accumulated depreciation
|
(94,000
|
(97,760
|
|
Total
|
$1,283,100
|
$967,730
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
Accounts payable
|
$ 191,760
|
$ 126,524
|
|
Accrued expenses payable
|
31,020
|
39,480
|
|
Bonds payable
|
206,800
|
274,480
|
|
Common stock
|
413,600
|
329,000
|
|
Retained earnings
|
439,920
|
198,246
|
|
Total
|
$1,283,100
|
$967,730
|
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
|
|
Sales revenue
|
|
$730,305
|
|
Less:
|
|
|
|
Cost of goods sold
|
$254,665
|
|
|
Operating expenses, excluding depreciation
|
23,331
|
|
|
Depreciation expense
|
87,420
|
|
|
Income tax expense
|
51,286
|
|
|
Interest expense
|
8,892
|
|
|
Loss on disposal of plant assets
|
14,100
|
439,694
|
|
Net income
|
|
$ 290,611
|
Additional information:
1. New plant assets costing $188,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $108,100 and accumulated depreciation of $91,180 were sold for $2,820 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $48,937 was declared and paid during the year.
Prepare a statement of cash flows using the indirect method.