Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Compar
ID: 2476469 • Letter: P
Question
Problem 12-9A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
$ 116,352
$ 69,696
126,432
54,720
162,000
148,104
40,896
37,440
198,720
156,960
410,400
349,200
(72,000
)
(74,880
)
$982,800
$741,240
Liabilities and Stockholders’ Equity
$ 146,880
$ 96,912
23,760
30,240
158,400
210,240
316,800
252,000
336,960
151,848
$982,800
$741,240
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
$559,382
$195,062
17,870
66,960
39,283
6,811
10,800
336,786
$ 222,596
Additional information:
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
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
Cash$ 116,352
$ 69,696
Accounts receivable126,432
54,720
Inventory162,000
148,104
Prepaid expenses40,896
37,440
Long-term investments198,720
156,960
Plant assets410,400
349,200
Accumulated depreciation(72,000
)
(74,880
)
Total$982,800
$741,240
Liabilities and Stockholders’ Equity
Accounts payable$ 146,880
$ 96,912
Accrued expenses payable23,760
30,240
Bonds payable158,400
210,240
Common stock316,800
252,000
Retained earnings336,960
151,848
Total$982,800
$741,240
Explanation / Answer
Net Income $ 2,22,596 Add: Depreciation $ 66,960 Loss on disposal $ 10,800 Increase in accounts payable $ 49,968 $ 1,27,728 less: Increase in accounts receivable $ 71,712 Increase in inventory $ 13,896 increase in prepaid expenses $ 3,456 Decrease in accrued expenses payable $ 6,480 $ -95,544 Net cash flow from operating activites $ 2,54,780 purchase of plant $ -1,44,000 Sale of assets $ 2,160 purchase of long term investments $ -41,760 Net cash flow from investing activites $ -1,83,600 Repayment of bonds payable $ -51,840 Issue of common stock $ 64,800 dividend paid $ -37,484 Net cash flow from financing activites $ -24,524 Total cash generated $ 46,656 dec 31, 2013 balance $ 69,696 Dec 31, 2014 balance $ 1,16,352