Problem 12-9A 9/30/16, 9:57 PM Problem 12-9A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 Cash 2013 $ 116,352 $ 69,696 Accounts receivable 126,432 54,720 Inventory 162,000 148,104 40,896 37,440 Long-term investments 198,720 156,960 Plant assets 410,400 349,200 Accumulated depreciation (72,000 ) (74,880 ) Prepaid expenses $982,800 $741,240 $ 146,880 $ 96,912 23,760 30,240 Bonds payable 158,400 210,240 Common stock 316,800 252,000 Retained earnings 336,960 151,848 $982,800 $741,240 Total Liabilities and Stockholders’ Equity Accounts payable Accrued expenses payable Total ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 Sales revenue $559,382 Less: Cost of goods sold $195,062 Operating expenses, excluding depreciation 17,870 Depreciation expense 66,960 Income tax expense 39,283 Interest expense Loss on disposal of plant assets Net income 6,811 10,800 336,786 $ 222,596 Additional information: 1. New plant assets costing $144,000 were purchased for cash during the year. Old plant assets having an original cost of $82,800 and accumulated depreciation of $69,840 were sold for 2. $2,160 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $37,484 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with http://edugen.wiley.com/edugen/shared/assignment/test/qview.uni?id=…76entrance1&selected_question=quest2379276&operation=take-question Page 1 of 3 Problem 12-9A 9/30/16, 9:57 PM 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 from Operating Activities Net Income $ Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ Loss on Disposal of Plant Assets Increase in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Accounts Payable Decrease in Accrued Expenses Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Plant Assets Purchase of Plant Assets Purchase of Investments Net Cash Provided by Investing Activities Cash Flows from Financing Activities Sale of Common Stock Payment of Cash Dividends Redemption of Bonds http://edugen.wiley.com/edugen/shared/assignment/test/qview.uni?id=…76entrance1&selected_question=quest2379276&operation=take-question Page 2 of 3 Problem 12-9A 9/30/16, 9:57 PM Net Cash Provided by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period $ LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER Copyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qview.uni?id=…76entrance1&selected_question=quest2379276&operation=take-question Page 3 of 3 Problem 12-10A 10/2/16, 6:35 PM Problem 12-10A Condensed financial data of Odgers Inc. follow. ODGERS INC. Comparative Balance Sheets December 31 Assets 2014 Cash 2013 $ 159,176 $ 95,348 Accounts receivable 172,966 74,860 Inventory 221,625 202,615 55,948 51,220 Long-term investments 271,860 214,730 Plant assets 561,450 477,725 Accumulated depreciation (98,500 ) Prepaid expenses (102,440 ) $1,344,525 $1,014,058 $ 200,940 $ 132,581 32,505 41,370 Bonds payable 216,700 287,620 Common stock 433,400 344,750 Retained earnings 460,980 207,737 $1,344,525 $1,014,058 Total Liabilities and Stockholders’ Equity Accounts payable Accrued expenses payable Total ODGERS INC. Income Statement Data For the Year Ended December 31, 2014 Sales revenue $765,266 Less: Cost of goods sold $266,856 Operating expenses, excluding depreciation 24,448 Depreciation expense 91,605 Income taxes 53,742 Interest expense Loss on disposal of plant assets Net income 9,318 14,775 460,744 $ 304,522 Additional information: 1. New plant assets costing $197,000 were purchased for cash during the year. Old plant assets having an original cost of $113,275 and accumulated depreciation of $95,545 were sold for 2. $2,955 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $51,279 was declared and paid during the year. Further analysis reveals that accounts payable pertain to merchandise creditors. http://edugen.wiley.com/edugen/shared/assignment/test/qview.uni?op…eload=true&id=quest2379277entrance1&selected_question=quest2379277 Page 1 of 3 Problem 12-10A 10/2/16, 6:35 PM Prepare a statement of cash flows for Odgers Inc. using the direct 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 from Operating Activities Cash Receipts from Customers Less : $ Cash Payments To Suppliers $ For Operating Expenses For Interest For Income Taxes Net Cash used by Operating Activities Cash Flows from Investing Activities Sale of Plant Assets Purchase of Investments Purchase of Plant Assets Net Cash used by Investing Activities Cash Flows from Financing Activities Sale of Common Stock Redemption of Bonds Payment of Cash Dividends Net Cash used by Financing Activities Net Increase in Cash http://edugen.wiley.com/edugen/shared/assignment/test/qview.uni?op…load=true&id=quest2379277entrance1&selected_question=quest2379277 Page 2 of 3 Problem 12-10A 10/2/16, 6:35 PM Cash at Beginning of Period Cash at End of Period $ SHOW SOLUTION LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER Copyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qview.uni?op…load=true&id=quest2379277entrance1&selected_question=quest2379277 Page 3 of 3 Problem 13-2A 10/2/16, 6:40 PM Problem 13-2A The comparative statements of Osborne Company are presented here. OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 Net sales 2013 $1,891,996 $1,751,956 1,059,996 1,007,456 Gross profit 832,000 744,500 Selling and administrative expenses 501,456 480,456 Income from operations 330,544 264,044 23,548 21,548 306,996 242,496 93,548 74,548 $ 213,448 $ 167,948 Cost of goods sold Other expenses and losses Interest expense Income before income taxes Income tax expense Net income OSBORNE COMPANY Balance Sheets December 31 Assets 2014 2013 Current assets Cash $ 60,100 $ 64,200 74,000 50,000 Accounts receivable 119,256 104,256 Inventory 127,548 117,048 380,904 335,504 661,242 532,542 $1,042,146 $868,046 $ 161,456 $146,856 45,048 43,548 206,504 190,404 232,242 212,242 438,746 402,646 Common stock ($5 par) 290,000 300,000 Retained earnings 313,400 165,400 603,400 465,400 $1,042,146 $868,046 Debt investments (short-term) Total current assets Plant assets (net) Total assets Liabilities and Stockholders’ Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders’ equity Total stockholders’ equity Total liabilities and stockholders’ equity All sales were on account. Net cash provided by operating activities for 2014 was $243,160. Capital http://edugen.wiley.com/edugen/shared/assignment/test/qview.uni?id=…78entrance1&selected_question=quest2379678&operation=take-question Page 1 of 2 Problem 13-2A 10/2/16, 6:40 PM expenditures were $135,270, and cash dividends were $65,448. Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.) (a) Earnings per share (b) Return on common stockholders’ equity % (c) Return on assets % (d) Current ratio :1 (e) Accounts receivable turnover times (f) Average collection period days (g) Inventory turnover (h) Days in inventory days (i) Times interest earned times (j) Asset turnover times (k) Debt to assets % (l) Current cash debt coverage times $ times (m) Cash debt coverage (n) Free cash flow times $ SHOW SOLUTION LINK TO TEXT LINK TO VIDEO Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER Copyright © 2000-2016 by John Wiley & Sons, Inc. or related companies. 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