Problem 12-9A ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 2013 $ 155,944 $ 93,412 169,454 73,340 217,125 198,501 54,812 50,180 266,340 210,370 550,050 468,025 (96,500 ) (100,360 ) $1,317,225 $993,468 Liabilities and Stockholders’ Equity $ 196,860 $ 129,889 31,845 40,530 212,300 281,780 424,600 337,750 451,620 203,519 $1,317,225 $993,468 ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 $749,728 $261,438 23,951 89,745 52,650 9,129 14,475 451,388 $ 298,340 ODGERS INC. Statement of Cash Flows For the Year Ended December 31, 2014 Adjustments to reconcile net income to Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 2013Cash $ 155,944 $ 93,412Accounts receivable 169,454 73,340Inventory 217,125 198,501Prepaid expenses 54,812 50,180Long-term investments 266,340 210,370Plant assets 550,050 468,025Accumulated depreciation (96,500 ) (100,360 )Total $1,317,225 $993,468 Liabilities and Stockholders’ EquityAccounts payable $ 196,860 $ 129,889Accrued expenses payable 31,845 40,530Bonds payable 212,300 281,780Common stock 424,600 337,750Retained earnings 451,620 203,519Total $1,317,225 $993,468 ODGERS INC. Income Statement Data For the Year Ended December 31, 2014Sales revenue $749,728Less: Cost of goods sold $261,438 Operating expenses, excluding depreciation 23,951 Depreciation expense 89,745 Income tax expense 52,650 Interest expense 9,129 Loss on disposal of plant assets 14,475 451,388Net income $ 298,340 Additional information: 1.New plant assets costing $193,000 were purchased for cash during the year.2.Old plant assets having an original cost of $110,975 and accumulated depreciation of $93,605 were sold for $2,895 cash.3.Bonds payable matured and were paid off at face value for cash.4.A cash dividend of $50,239 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 at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash Increase in Accounts Payable Loss on Disposal of Plant Assets Net Income Decrease in Accounts Receivable Increase in Prepaid Expenses Decrease in Prepaid Expenses Decrease in Accrued Expenses Payable Decrease in Inventory Increase in Inventory Sale of Common Stock Payment of Cash Dividends Increase in Accounts Receivable Redemption of Bonds Purchase of Plant Assets Depreciation Expense Decrease in Accounts Payable Increase in Accrue.

1. Problem 12-9A
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013
$ 155,944
$ 93,412
169,454
73,340
217,125
198,501
54,812
50,180
266,340
210,370
550,050
468,025
(96,500
)
(100,360
)
$1,317,225
$993,468
Liabilities and Stockholders’ Equity
$ 196,860
$ 129,889
31,845
40,530
212,300
281,780
424,600
337,750
451,620

2. 203,519
$1,317,225
$993,468
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
$749,728
$261,438
23,951
89,745
52,650
9,129
14,475
451,388
$ 298,340
ODGERS INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
Problem 12-9A Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets
2014
2013Cash
$ 155,944
$ 93,412Accounts receivable
169,454
73,340Inventory
217,125
198,501Prepaid expenses
54,812
50,180Long-term investments
266,340

3. 210,370Plant assets
550,050
468,025Accumulated depreciation
(96,500
)
(100,360
)Total
$1,317,225
$993,468
Liabilities and Stockholders’ EquityAccounts payable
$ 196,860
$ 129,889Accrued expenses payable
31,845
40,530Bonds payable
212,300
281,780Common stock
424,600
337,750Retained earnings
451,620
203,519Total
$1,317,225
$993,468
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014Sales revenue
$749,728Less: Cost of goods sold
$261,438 Operating expenses, excluding depreciation
23,951 Depreciation expense
89,745 Income tax expense
52,650 Interest expense
9,129 Loss on disposal of plant assets
14,475
451,388Net income
$ 298,340
Additional information:
1.New plant assets costing $193,000 were purchased for cash during the year.2.Old plant assets

4. having an original cost of $110,975 and accumulated depreciation of $93,605 were sold for
$2,895 cash.3.Bonds payable matured and were paid off at face value for cash.4.A cash dividend
of $50,239 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 at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash
Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by
Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating
ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash
used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Increase in Accounts Payable Loss on Disposal of Plant Assets Net Income Decrease
in Accounts Receivable Increase in Prepaid Expenses Decrease in Prepaid
Expenses Decrease in Accrued Expenses Payable Decrease in Inventory Increase in
Inventory Sale of Common Stock Payment of Cash Dividends Increase in Accounts
Receivable Redemption of Bonds Purchase of Plant Assets Depreciation
Expense Decrease in Accounts Payable Increase in Accrued Expenses Payable Sale of
Plant Assets Purchase of Investments
$
Adjustments to reconcile net income to
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash
Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by
Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating
ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash
used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Purchase of Plant Assets Increase in Accrued Expenses Payable Loss on Disposal of
Plant Assets Increase in Accounts Payable Sale of Common Stock Decrease in
Inventory Increase in Accounts Receivable Decrease in Accounts Receivable Purchase of
Investments Increase in Inventory Sale of Plant Assets Payment of Cash
Dividends Depreciation Expense Increase in Prepaid Expenses Redemption of
Bonds Net Income Decrease in Accounts Payable Decrease in Accrued Expenses
Payable Decrease in Prepaid Expenses
$

5. Sale of Common Stock Increase in Accounts Receivable Net Income Redemption of
Bonds Increase in Prepaid Expenses Depreciation Expense Increase in Accrued Expenses
Payable Payment of Cash Dividends Increase in Accounts Payable Decrease in Accrued
Expenses Payable Decrease in Accounts Payable Increase in Inventory Sale of Plant
Assets Loss on Disposal of Plant Assets Decrease in Prepaid Expenses Decrease in
Accounts Receivable Decrease in Inventory Purchase of Investments Purchase of Plant
Assets
Increase in Inventory Increase in Accounts Payable Increase in Accounts
Receivable Payment of Cash Dividends Purchase of Plant Assets Decrease in
Inventory Sale of Common Stock Decrease in Prepaid Expenses Loss on Disposal of Plant
Assets Decrease in Accounts Receivable Sale of Plant Assets Purchase of
Investments Redemption of Bonds Net Income Decrease in Accrued Expenses
Payable Depreciation Expense Decrease in Accounts Payable Increase in Accrued
Expenses Payable Increase in Prepaid Expenses
Sale of Common Stock Increase in Accounts Payable Decrease in Accounts
Receivable Sale of Plant Assets Payment of Cash Dividends Redemption of
Bonds Decrease in Inventory Increase in Accounts Receivable Decrease in Prepaid
Expenses Increase in Inventory Net Income Purchase of Investments Increase in
Prepaid Expenses Purchase of Plant Assets Depreciation Expense Decrease in Accounts
Payable Loss on Disposal of Plant Assets Decrease in Accrued Expenses Payable Increase
in Accrued Expenses Payable
Increase in Prepaid Expenses Payment of Cash Dividends Net Income Increase in
Accounts Receivable Depreciation Expense Increase in Accounts Payable Purchase of
Investments Decrease in Accrued Expenses Payable Decrease in Prepaid
Expenses Decrease in Accounts Payable Decrease in Accounts Receivable Loss on
Disposal of Plant Assets Increase in Inventory Increase in Accrued Expenses
Payable Decrease in Inventory Sale of Plant Assets Purchase of Plant Assets Sale of
Common Stock Redemption of Bonds
Increase in Accounts Receivable Decrease in Accounts Receivable Net
Income Depreciation Expense Sale of Plant Assets Purchase of Investments Purchase of
Plant Assets Decrease in Accounts Payable Decrease in Inventory Decrease in Prepaid
Expenses Payment of Cash Dividends Redemption of Bonds Sale of Common
Stock Increase in Prepaid Expenses Increase in Inventory Increase in Accounts

6. Payable Loss on Disposal of Plant Assets Decrease in Accrued Expenses Payable Increase
in Accrued Expenses Payable
Sale of Common Stock Redemption of Bonds Decrease in Accounts
Receivable Payment of Cash Dividends Purchase of Investments Net Income Purchase
of Plant Assets Decrease in Inventory Increase in Inventory Depreciation
Expense Increase in Prepaid Expenses Increase in Accounts Payable Decrease in
Accounts Payable Loss on Disposal of Plant Assets Decrease in Accrued Expenses
Payable Sale of Plant Assets Increase in Accrued Expenses Payable Decrease in Prepaid
Expenses Increase in Accounts Receivable
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing
Activities Cash Flows from Investing Activities Cash Flows from Operating
Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing
Activities Net Cash Provided by Operating Activities Net Cash used by Financing
Activities Net Cash used by Investing Activities Net Cash used by Operating
Activities Net Decrease in Cash Net Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash
Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by
Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating
ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash
used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Sale of Common Stock Decrease in Prepaid Expenses Increase in Inventory Decrease
in Inventory Decrease in Accounts Receivable Increase in Accounts
Receivable Redemption of Bonds Increase in Accounts Payable Net Income Increase in
Accrued Expenses Payable Sale of Plant Assets Purchase of Investments Purchase of
Plant Assets Payment of Cash Dividends Depreciation Expense Decrease in Accounts
Payable Increase in Prepaid Expenses Loss on Disposal of Plant Assets Decrease in
Accrued Expenses Payable
Payment of Cash Dividends Increase in Accounts Receivable Increase in Inventory Net
Income Decrease in Accounts Payable Loss on Disposal of Plant Assets Depreciation
Expense Sale of Common Stock Decrease in Accrued Expenses Payable Sale of Plant
Assets Increase in Accrued Expenses Payable Increase in Accounts Payable Increase in

7. Prepaid Expenses Decrease in Prepaid Expenses Decrease in Inventory Decrease in
Accounts Receivable Purchase of Investments Purchase of Plant Assets Redemption of
Bonds
Depreciation Expense Sale of Common Stock Decrease in Prepaid Expenses Purchase
of Investments Redemption of Bonds Payment of Cash Dividends Increase in Prepaid
Expenses Net Income Increase in Accounts Payable Decrease in Accounts
Receivable Decrease in Accrued Expenses Payable Decrease in Accounts Payable Sale of
Plant Assets Loss on Disposal of Plant Assets Decrease in Inventory Purchase of Plant
Assets Increase in Accounts Receivable Increase in Accrued Expenses Payable Increase in
Inventory
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing
Activities Cash Flows from Investing Activities Cash Flows from Operating
Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing
Activities Net Cash Provided by Operating Activities Net Cash used by Financing
Activities Net Cash used by Investing Activities Net Cash used by Operating
Activities Net Decrease in Cash Net Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash
Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by
Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating
ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash
used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Net Income Redemption of Bonds Increase in Prepaid Expenses Payment of Cash
Dividends Depreciation Expense Increase in Accounts Payable Sale of Common
Stock Loss on Disposal of Plant Assets Decrease in Accounts Payable Decrease in
Prepaid Expenses Decrease in Accrued Expenses Payable Increase in Accrued Expenses
Payable Sale of Plant Assets Purchase of Investments Purchase of Plant Assets Increase
in Inventory Decrease in Inventory Increase in Accounts Receivable Decrease in
Accounts Receivable
Increase in Accrued Expenses Payable Redemption of Bonds Decrease in Accounts
Receivable Depreciation Expense Decrease in Accrued Expenses Payable Increase in
Accounts Receivable Purchase of Plant Assets Sale of Plant Assets Decrease in
Inventory Payment of Cash Dividends Purchase of Investments Increase in

8. Inventory Loss on Disposal of Plant Assets Sale of Common Stock Decrease in Accounts
Payable Increase in Prepaid Expenses Decrease in Prepaid Expenses Net
Income Increase in Accounts Payable
Redemption of Bonds Increase in Accrued Expenses Payable Payment of Cash
Dividends Increase in Prepaid Expenses Sale of Common Stock Increase in Accounts
Receivable Net Income Purchase of Plant Assets Decrease in Prepaid
Expenses Increase in Inventory Depreciation Expense Increase in Accounts
Payable Decrease in Accounts Payable Sale of Plant Assets Loss on Disposal of Plant
Assets Decrease in Accrued Expenses Payable Decrease in Inventory Decrease in
Accounts Receivable Purchase of Investments
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing
Activities Cash Flows from Investing Activities Cash Flows from Operating
Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing
Activities Net Cash Provided by Operating Activities Net Cash used by Financing
Activities Net Cash used by Investing Activities Net Cash used by Operating
Activities Net Decrease in Cash Net Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash
Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by
Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating
ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash
used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash
Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by
Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating
ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash
used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash
Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by
Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating
ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash
used by Operating ActivitiesNet Decrease in CashNet Increase in Cash

9. $LINK TO TEXT
Solution
ODGERS INC. Cash Flow for the year ended 31 December 2014 (Indirect Method)
$ $ Cash from Operating Activities Net Income for the year 2,98,340 Add
: Depreciation for the year 89,745 Add : Loss on Disposal of Plant Assets 14,475
1,04,220 Net Income before changes in Operating Activities 4,02,560 Less :
Increase in Accounts Receivable -96,114 Less : Increase in Inventory -18,624 Less :
Increase in Loans and Advances -4,632 Add : Increase in Accounts Payable 66,971
Less : Reduction in Other Current Liab. -8,685 -61,084 Net Cash from
Operating Activities 3,41,476 (a) Cash from Investing Activities Fixed
Assets Purchase of Fixed Assets in cash -1,93,000 Sale of Fixed Assets (after adjusting
loss on sale) 2,895 Long Term Investments done during the year -55,970 Net
Cash from Investing Activities -2,46,075 (b) Cash from Financing Activities
Repayment of Bonds Payable -69,480 Dividend Declared and Paid -50,239 Issue of
Common Stock 86,850 Net Cash from Financing Activities -32,869 (c) Net
Cash Inflow during the year 62,532 (a) + (b) + (c) Cash Balance at the beginning of the
year 93,412 Cash Balance at the end of the year 1,55,944 -