*P14-12A Condensed financial data of Oprah Company appear below.

Price: $3.99


*P14-12A Condensed financial data of Oprah Company appear below.

OPRAH COMPANY
Comparative Balance Sheets
December 31

Assets 2008 2007
Cash $ 92,700 $ 47,250
Accounts receivable 90,800 57,000
Inventories 121,900 102,650
Investments 84,500 87,000
Plant assets 250,000 205,000
Accumulated depreciation (49,500) (40,000)
$590,400 $458,900
Liabilities and Stockholders’ Equity
Accounts payable $ 57,700 $ 48,280
Accrued expenses payable 12,100 18,830
Bonds payable 100,000 70,000
Common stock 250,000 200,000
Retained earnings 170,600 121,790
$590,400 $458,900

OPRAH COMPANY
Income Statement
For the Year Ended December 31, 2008

Sales $297,500
Gain on sale of plant assets 8,750
306,250
Less:
Cost of goods sold $99,460
Operating expenses (excluding
depreciation expense) 14,670
Depreciation expense 49,700
Income taxes 7,270
Interest expense 2,940 174,040
Net income $132,210

Additional information:

1. New plant assets costing $92,000 were purchased for cash during the year.

2. Investments were sold at cost.

3. Plant assets costing $47,000 were sold for $15,550, resulting in gain of $8,750.

4. A cash dividend of $83,400 was declared and paid during the year.

Instructions

Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling
items directly in the worksheet columns, using letters to cross-reference each entry.