ODGERS INC.

Comparative Balance Sheets

31-Dec
Assets
Cash
Accounts receivable
Inventories
Prepaid expenses
Long-Term Investments
Plant assets
Accumulated depreciation
Total
Liabilities and Stockholders' Equity
Accounts payable
Accrued expenses payable
Bonds payable
Common stock
Retained earnings
Total

2014
$196,344
213,354
273,375
69,012
335,340
692,550
(121,500)
$1,658,475
$247,860
40,095
267,300
534,600
568,620
$1,658,475
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014

Sales
Less:
Cost of goods sold
Operating expenses, excluding depreciation
Depreciation expense
Income taxes
Interest expense
Loss on sale of plant assets
Net income

$329,168
30,156
112,995
66,290
11,494
18,225

Additional information:
1. New plant assets costing $243000 were purchased for cash during the year.
2. Old plant assets having an original cost of $139,725 and accumulated depreciation
of $117,855 were sold for $3,645 cash.
3. Bonds matured and were paid off at face value for cash.
4. A cash dividend of $63,254 was declared and paid during the year.
Further analysis preveal that account payable pertain to merchandise creditors.
Prepare a statement of cash flow for Odgers Inc using the direct method.

se creditors.

ODGERS INC.
Statement of Cashflow
For the Year Ended December 31, 2014
2013
$117,612
92,340
249,926
63,180
264,870
589,275
(126,360)
$1,250,843
$163,539
51,030
354,780
425,250
256,244
$1,250,843

Cash flows from operating activities

Cash receipts from customers
Less Cash Payments:
To suppliers
For Operating Expenses
For Interest Expense
For Income Taxes
Net Cash provided by operating activities
Cash Flow from Investing activities
Sales of plant asset
Purcahse of investements
Purchase of plant asset
Net cash used by investing activities
Cashflowfrom financing activities
Sale of common stock
Redemption of bonds
Payment of cash dividend
Net Cash used by financing activities

$943,958
Net Increase in cash
Cash at beginning of period
Cash at end of period

568,328
$375,630

GERS INC.
nt of Cashflow
ded December 31, 2014

$
$
$
$
$

268,296
46,923
11,494
66,290
$
$

activities
$
$
$

$
$
$

822,944

-393,003
429,941

3,645
-70,470
-243,000
$

-309,825

-41,384

$
$
$

78,732
117,612
196,344

109,350
-87,480
-63,254

Computation
Cash Receipt from customers
Sales
Less: Increase in Acc Rec
Cash receipt from customers
Cash Payment to suppleirs
Cost of goods sold
Add: Increase in Inventory
Cost of purchases
Less: Increase in account payable
Cash Payment to suppleirs
Cash Payment for Operating Expenses
Operating expenses excluding dep exp.
Add: Increase in prepaid exp.
Add: Decrease in accrued exp payable
Cash Payment for Operating Expenses

ustomers
$
$
$

943,958
121,014
822,944

nt payable

$
$
$
$
$

329,168
23,449
352,617
84,321
268,296

erating Expenses
luding dep exp.

ed exp payable
erating Expenses

$
$

5,832
10,935

30,156

$
$

16,767
46,923