ACC – Wiley plus -Week 7 Chapter 12 Problem 12­9A

Problem 12­9A
Condensed financial data of Odgers Inc. follow.
Assets

2014

Cash

$ 101,000

2013
$ 60,500

Accounts receivable

109,750

47,500

Inventory

140,625

128,563

Prepaid expenses

35,500

32,500

Long­term investments

172,500

136,250

Plant assets

356,250

303,125

Accumulated depreciation

(62,500 )

Total

(65,000 )

$853,125

$643,438

$ 127,500

$ 84,125

Liabilities and

Stockholders’ Equity
Accounts payable
Accrued expenses payable

20,625

26,250

Bonds payable

137,500

182,500

Common stock

275,000

218,750

Retained earnings

292,500

131,813

$853,125

$643,438

Total

ODGERS INC.
Income Statement Data
For the Year Ended December 31, 2014
Sales revenue

$485,575

Less:
Cost of goods sold

$169,325

Operating expenses,
excluding depreciation

15,513

Depreciation expense

58,125

Income tax expense

34,100

Interest expense

5,913

Loss on disposal of plant
assets

9,375

Net income

292,351
$ 193,224