Additional information:1.New equipment costing $79,000 was purchased for cash during the year.2.Old equipment having an original cost of $56,000 was sold for $12,500 cash.3.Bonds matured and were paid off at face value for cash.4.A cash dividend of $46,500 was declared and paid during the year. Prepare a statement of cash flows using the indirect method

Complete Question:

ODGERS INC.

Comparative Balance Sheets at December 31, 2013 and 2014

Assets                                        2014           2013        Changes

Cash                                      $127,664     $76,472     + $51,192

Accounts receivable               138,724       60,040      + 78,684

Inventory                                 177,750      162,503       +15,247

Prepaid expenses                   44,872         41,080        +3,792

Long-term investments        218,040       172,220     +45,820

Plant assets                          450,300       383,150      +67,150

Accumulated depreciation   (79,000)       (82,160)       -(3,160)

Total                                 $1,078,350     $813,305

Liabilities and Stockholders' Equity:

Accounts payable               $161,160     $106,334     +$54,826

Accrued expenses payable 26,070          33,180            -7,110

Bonds payable                    173,800       230,680        -56,880

Common stock                  347,600       276,500         +71,100

Retained earnings            369,720          166,611      +203,109

Total                              $1,078,350      $813,305

ODGERS INC.

Income STatement Data

For the Year Ended December 31, 2014

Sales revenue                                             $613,767

Less:

Cost of goods sold                   $214,027

Operating expenses, excluding

depreciation                                19,608

Depreciation expense                 73,470

Income tax expense                    43,102

Interest expense                           7,473

Loss on disposal of plant assets 11,850  $369,530

Net income                                               $244,237

Additional information:

1. New equipment costing $158,000 was purchased for cash during the year.

2. Old equipment having an original cost of $90,850 and accumulated depreciation of $76,630 was sold for $2,370 cash.

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

4. A cash dividend of $41,128 was declared and paid during the year.

Prepare a statement of cash flows using the indirect method.

Odgers Inc.

ODGERS INC.

Statement of Cash Flows

For the Year Ended December 31, 2014

Operating activities:

Net income                                    $244,237

Loss on disposal of plant assets       11,850

Depreciation expense                      73,470

Accrued expenses payable                (7,110)

Inventory                                          (15,247)

Accounts receivable                       (78,684)

Prepaid expenses                            (3,792)

Accounts payable                           54,826

Net cash (operating activities)   $279,550

Investing activities:

Purchase of equipment            ($158,000)

Long-term investments                (45,820)

Sale of equipment                            2,370

Net cash (investing activities)  ($201,450)

Financing activities:

Repayment of bonds                 ($56,880)

Cash dividend                                (41,128)

Common stock issue                      71,100

Net cash (financing activities)   ($26,908)

Net cash inflow                            $51,192

Explanation:

a) Data and Calculations:

Net income                                    $244,237

Loss on disposal of plant assets       11,850

Depreciation expense                      73,470

Net cash by operating activities $329,550

1. Purchase of equipment $158,000

2. Sale of equipment $2,370

3. Repayment of bonds $56,880

4. Cash dividend $41,128

Note: The figures of additional information have been changed to agree with the complete question.

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