Problem 12-9A ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 201
ID: 2450554 • Letter: P
Question
Problem 12-9A
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
$ 171,296
$ 102,608
186,136
80,560
238,500
218,042
60,208
55,120
292,560
231,080
604,200
514,100
(106,000
)
(110,240
)
$1,446,900
$1,091,270
Liabilities and Stockholders’ Equity
$ 216,240
$ 142,676
34,980
44,520
233,200
309,520
466,400
371,000
496,080
223,554
$1,446,900
$1,091,270
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
$823,535
$287,175
26,309
98,580
57,834
10,028
15,900
495,826
$ 327,709
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
Problem 12-10A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
$ 91,304
$ 54,692
99,214
42,940
127,125
116,221
32,092
29,380
155,940
123,170
322,050
274,025
(56,500
)
(58,760
)
$771,225
$581,668
Liabilities and Stockholders’ Equity
$ 115,260
$ 76,049
18,645
23,730
124,300
164,980
248,600
197,750
264,420
119,159
$771,225
$581,668
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
$438,960
$153,070
14,023
52,545
30,826
5,345
8,475
264,284
$ 174,676
Additional information:
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).)
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
$
Problem 12-9A
Condensed financial data of Odgers Inc. follow.ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash$ 171,296
$ 102,608
Accounts receivable186,136
80,560
Inventory238,500
218,042
Prepaid expenses60,208
55,120
Long-term investments292,560
231,080
Plant assets604,200
514,100
Accumulated depreciation(106,000
)
(110,240
)
Total$1,446,900
$1,091,270
Liabilities and Stockholders’ Equity
Accounts payable$ 216,240
$ 142,676
Accrued expenses payable34,980
44,520
Bonds payable233,200
309,520
Common stock466,400
371,000
Retained earnings496,080
223,554
Total$1,446,900
$1,091,270
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
$823,535
Less: Cost of goods sold$287,175
Operating expenses, excluding depreciation26,309
Depreciation expense98,580
Income tax expense57,834
Interest expense10,028
Loss on disposal of plant assets15,900
495,826
Net income$ 327,709
Additional information:
1. New plant assets costing $212,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $121,900 and accumulated depreciation of $102,820 were sold for $3,180 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $55,183 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).)
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
$
Adjustments to reconcile net income to
$
Problem 12-10A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash$ 91,304
$ 54,692
Accounts receivable99,214
42,940
Inventory127,125
116,221
Prepaid expenses32,092
29,380
Long-term investments155,940
123,170
Plant assets322,050
274,025
Accumulated depreciation(56,500
)
(58,760
)
Total$771,225
$581,668
Liabilities and Stockholders’ Equity
Accounts payable$ 115,260
$ 76,049
Accrued expenses payable18,645
23,730
Bonds payable124,300
164,980
Common stock248,600
197,750
Retained earnings264,420
119,159
Total$771,225
$581,668
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
$438,960
Less: Cost of goods sold$153,070
Operating expenses, excluding depreciation14,023
Depreciation expense52,545
Income taxes30,826
Interest expense5,345
Loss on disposal of plant assets8,475
264,284
Net income$ 174,676
Additional information:
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).)
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
$
:
$
$
$
Explanation / Answer
Answer:12-9A
Answer:12-10A
Odgers Inc. Statement of cash flow Particulars Amount ($) Cash flows from operating activities Net income 327709 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 98580 Loss on sale of plant assets 15900 Increase in Accounts receivable -105576 Increase in inventory -20458 Increase in prepaid expenses -5088 Increase in accounts payable 73564 Dec in accrued expenses -9540 Net cash provided by operating activities 375091 Cash flows from Investing activities Purchase of plant assets -212000 Proceeds from sale of old plant assets 3180 Acquisition of investment -61480 Net cash used by investing activities (107,500) -270300 Cash flows from Financing activities Dividend paid -55183 Proceeds from share issue 95400 Redemption of bonds payable -76320 Net cash used by financing activities -36103 Net increase in CCE 68688 CCE at beginning of year 102608 CCE at end of year 171296