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The Murdock Corporation reported the following balance sheet data for 2021 and 2020:    2021 2020...

The Murdock Corporation reported the following balance sheet data for 2021 and 2020:
  

2021 2020
Cash $ 88,475 $ 28,955
Available-for-sale debt securities (not cash equivalents) 20,500 95,000
Accounts receivable 90,000 77,250
Inventory 175,000 154,000
Prepaid insurance 2,400 3,000
Land, buildings, and equipment 1,270,000 1,135,000
Accumulated depreciation (620,000 ) (582,000 )
Total assets $ 1,026,375 $ 911,205
Accounts payable $ 85,340 $ 158,670
Salaries payable 24,000 29,500
Notes payable (current) 34,000 85,000
Bonds payable 210,000 0
Common stock 300,000 300,000
Retained earnings 373,035 338,035
Total liabilities and shareholders' equity $ 1,026,375 $ 911,205

  
Additional information for 2021:

  • (1) Sold available-for-sale debt securities costing $74,500 for $80,000.
  • (2) Equipment costing $20,000 with a book value of $6,000 was sold for $7,500.
  • (3) Issued 6% bonds payable at face value, $210,000.
  • (4) Purchased new equipment for $155,000 cash.
  • (5) Paid cash dividends of $25,000.
  • (6) Net income was $60,000.


Required:
Prepare a statement of cash flows for 2021 in good form using the indirect method for cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)
  

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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