Problem
Condensed financial data of Odgers Inc. follow.
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ODGERS INC.
Comparative Balance Sheets
December 31
|
|
Assets
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2014
|
2013
|
|
Cash
|
$ 159,176
|
$ 95,348
|
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Accounts receivable
|
172,966
|
74,860
|
|
Inventory
|
221,625
|
202,615
|
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Prepaid expenses
|
55,948
|
51,220
|
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Long-term investments
|
271,860
|
214,730
|
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Plant assets
|
561,450
|
477,725
|
|
Accumulated depreciation
|
(98,500
|
(102,440
|
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Total
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$1,344,525
|
$1,014,058
|
|
Liabilities and Stockholders' Equity
|
|
|
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Accounts payable
|
$ 200,940
|
$ 132,581
|
|
Accrued expenses payable
|
32,505
|
41,370
|
|
Bonds payable
|
216,700
|
287,620
|
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Common stock
|
433,400
|
344,750
|
|
Retained earnings
|
460,980
|
207,737
|
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Total
|
$1,344,525
|
$1,014,058
|
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ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
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Sales revenue
|
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$765,266
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|
Less:
|
|
|
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Cost of goods sold
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$266,856
|
|
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Operating expenses, excluding depreciation
|
24,448
|
|
|
Depreciation expense
|
91,605
|
|
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Income tax expense
|
53,742
|
|
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Interest expense
|
9,318
|
|
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Loss on disposal of plant assets
|
14,775
|
460,744
|
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Net income
|
|
$ 304,522
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Additional information:
1. New plant assets costing $197,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $113,275 and accumulated depreciation of $95,545 were sold for $2,955 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $51,279 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).)