Problem
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31 |
| Assets |
2014 |
2013 |
| Cash |
mce_markernbsp;125,240 |
mce_markernbsp;75,020 |
| Accounts receivable |
136,090 |
58,900 |
| Inventory |
174,375 |
159,418 |
| Prepaid expenses |
44,020 |
40,300 |
| Long-term investments |
213,900 |
168,950 |
| Plant assets |
441,750 |
375,875 |
| Accumulated depreciation |
(77,500 |
) |
(80,600 |
) |
| Total |
$1,057,875 |
|
$797,863 |
|
| Liabilities and Stockholders' Equity |
| Accounts payable |
mce_markernbsp;158,100 |
mce_markernbsp;104,315 |
| Accrued expenses payable |
25,575 |
32,550 |
| Bonds payable |
170,500 |
226,300 |
| Common stock |
341,000 |
271,250 |
| Retained earnings |
362,700 |
|
163,448 |
|
| Total |
$1,057,875 |
|
$797,863 |
|
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014 |
| Sales revenue |
$602,113 |
| Less: |
| Cost of goods sold |
$209,963 |
| Operating expenses, excluding depreciation |
19,236 |
| Depreciation expense |
72,075 |
| Income tax expense |
42,284 |
| Interest expense |
7,332 |
| Loss on disposal of plant assets |
11,625 |
362,515 |
| Net income |
mce_markernbsp;239,598 |
Additional information:
1. New plant assets costing $155,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $89,125 and accumulated depreciation of $75,175 were sold for $2,325 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $40,346 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).)