Chapter 12 Exercises

P12-9A  Prepare a statement of cash flows—indirect method.

(LO 4), AP
Condensed financial data of Odgers Inc. follow.
ODGERS INC.
Comparative Balance Sheets
December 31
Assets 2014 2013
Cash $ 80,800 $ 48,400
Accounts receivable 87,800 38,000
Inventory 112,500 102,850
Prepaid expenses 28,400 26,000
Long-term investments 138,000 109,000
Plant assets 285,000 242,500
Accumulated depreciation (50,000) (52,000)
Total $682,500 $514,750
Liabilities and Stockholders' Equity    
Accounts payable $102,000 $ 67,300
Accrued expenses payable 16,500 21,000
Bonds payable 110,000 146,000
Common stock 220,000 175,000
Retained earnings 234,000 105,450
Total $682,500 $514,750
ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue   $388,460
Less:    
Cost of goods sold $135,460  
Operating expenses, excluding 12,410  
depreciation
Depreciation expense 46,500  
Income tax expense 27,280  
Interest expense 4,730  
Loss on disposal of plant assets 7,500 233,880
Net income   $154,580
Additional information:
1.  New plant assets costing $100,000 were purchased for cash during the year.

2.  Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for
$1,500 cash.

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

4.  A cash dividend of $26,030 was declared and paid during the year.
Instructions
Prepare a statement of cash flows using the indirect method.
P12-11A  Prepare a statement of cash flows—indirect method.
(LO 4), AP
The comparative balance sheets for Yanik Company as of December 31 are presented below.
YANIK COMPANY
Comparative Balance Sheets
December 31
Assets 2014 2013
Cash $ 68,000 $ 45,000
Accounts receivable 50,000 58,000
Inventory 151,450 142,000
Prepaid expenses 15,280 21,000
Land 145,000 130,000
Buildings 200,000 200,000
Accumulated depreciation—buildings (60,000) (40,000)
Equipment 225,000 155,000
Accumulated depreciation— (45,000) (35,000)
equipment
Total $749,730 $676,000
Liabilities and Stockholders' Equity    
Accounts payable $ 44,730 $ 36,000
Bonds payable 300,000 300,000
Common stock, $1 par 200,000 160,000
Retained earnings 205,000 180,000
Total $749,730 $676,000
Additional information:
1.  Operating expenses include depreciation expense of $42,000.

2.  Land was sold for cash at book value.

3.  Cash dividends of $12,000 were paid.

4.  Net income for 2014 was $37,000.

5.  Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of
$10,000 was sold for $8,000 cash.

6.  40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.