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Question 3 Condensed financial data of Odgers Inc. follow. ODGERS-(Answered)

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I need help solving the attached questions in my ACC/291 week 5 class


Question 3

 

Condensed financial data of Odgers Inc. follow.

 

ODGERS INC.

 

Comparative Balance Sheets

 

December 31

 

Assets

 


 

2014

 


 

2013

 


 

Cash

 


 

$ 110,696

 


 

$ 66,308

 


 

Accounts receivable

 


 

120,286

 


 

52,060

 


 

Inventory

 


 

154,125

 


 

140,905

 


 

Prepaid expenses

 


 

38,908

 


 

35,620

 


 

Long-term investments

 


 

189,060

 


 

149,330

 


 

Plant assets

 


 

390,450

 


 

332,225

 


 

Accumulated depreciation

 


 

(68,500

 


 

Total

 


 

$935,025

 


 

$705,208

 


 

Accounts payable

 


 

$ 139,740

 


 

$ 92,201

 


 

Accrued expenses payable

 


 

22,605

 


 

28,770

 


 

Bonds payable

 


 

150,700

 


 

200,020

 


 

Common stock

 


 

301,400

 


 

239,750

 


 

Retained earnings

 


 

320,580

 


 

144,467

 


 

Total

 


 

$935,025

 


 

$705,208

 


 

)

 


 

(71,240

 


 

Liabilities and Stockholders? Equity

 


 

ODGERS INC.

 

Income Statement Data

 

For the Year Ended December 31, 2014

 

Sales revenue

 


 

$532,190

 


 

Less:

 

Cost of goods sold

 


 

$185,580

 


 

)

 


 

Operating expenses, excluding depreciation

 


 

17,002

 


 

Depreciation expense

 


 

63,705

 


 

Income tax expense

 


 

37,374

 


 

Interest expense

 


 

6,480

 


 

Loss on disposal of plant assets

 


 

10,275

 


 

Net income

 


 

320,416

 

$ 211,774

 


 

Additional information:

 

1. New plant assets costing $137,000 were purchased for cash during the year.

 

2.

 


 

Old plant assets having an original cost of $78,775 and accumulated depreciation of $66,445 were

 

sold for $2,055 cash.

 


 

3. Bonds payable matured and were paid off at face value for cash.

 

4. A cash dividend of $35,661 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

 


 

Cash Flows fromOperating Activities

 


 

$

 

Net Income

 


 

Adjustments to reconcile net income to

 


 

Net Cash Provided by Operating Activities

 


 

Depreciation Expense

 


 

$

 


 

Increase in Accounts Payable

 


 

Loss on Disposal of Plant Assets

 


 

Increase in Accounts Receivable

 


 

Increase in Inventory

 


 

Increase in Prepaid Expenses

 


 

Decrease in Accrued Expenses Payable

 


 

Net Cash Provided by Operating Activities

 


 

Cash Flows fromInvesting Activities

 


 

Sale of Plant Assets

 


 

Purchase of Plant Assets

 


 

Purchase of Investments

 


 

Net Cash used by Investing Activities

 


 

Cash Flows fromFinancing Activities

 


 

Sale of Common Stock

 


 

Payment of Cash Dividends

 


 

Redemption of Bonds

 


 

Net Cash used by Financing Activities

 


 

Net Increase in Cash

 


 

Cash at Beginning of Period

 


 

$

 

Cash at End of Period

 


 

 

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