Question
In: Accounting
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017...
The Murdock Corporation reported the following balance sheet
data for 2018 and 2017:
| | 2018 | 2017 |
| Cash | $77,375 | $22,955 |
| Available-for-sale debt securities | | |
| (not cash equivalents) | 15,500 | 85,000 |
| Accounts receivable | 80,000 | 68,250 |
| Inventory | 165,000 | 145,000 |
| Prepaid insurance | 1,500 | 2,000 |
| Land, buildings, and equipment | 1,250,000 | 1,125,000 |
| Accumulated depreciation | (610,000) | (572,000) |
| Total assets | $979,375 | $876,205 |
| Accounts payable | $76,340 | $148,670 |
| Salaries payable | 20,000 | 24,500 |
| Notes payable (current) | 25,000 | 75,000 |
| Bonds payable | 200,000 | 0 |
| Common stock | 300,000 | 300,000 |
| Retained earnings | 358,035 | 328,035 |
| Total liabilities and shareholders' equity | $979,375 | $876,205 |
Additional information for 2018:
(1.) Sold available-for-sale debt securities costing $69,500 for
$74,000.
(2.) Equipment costing $20,000 with a book value of $5,000 was sold
for $6,000.
(3.) Issued 6% bonds payable at face value, $200,000.
(4.) Purchased new equipment for $145,000 cash.
(5.) Paid cash dividends of $20,000.
(6.) Net income was $50,000.
Required:
Prepare a statement of cash flows for 2018 in good form using the
indirect method for cash flows from operating activities. Also,
provide a cash flow worksheet to prove your answer.
Solutions
Expert Solution
|
Murdock Corporation |
||
|
CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31,2018 |
||
|
$ |
$ |
|
|
CASH FLOW FROM OPERATING ACTIVITIES |
||
|
Net Profit /Operating Profit Before Working Capital Changes |
50,000.00 |
|
|
Adjustment For non cash items and working capital changes: |
||
|
Depreciation 610000 - [572000 - (20000 - 5000)] |
53,000.00 |
|
|
Gain on sale of Available for sale securities (69500 - 74000) |
(4,500.00) |
|
|
Gain on sale of Equipment (5000 - 6000) |
(1,000.00) |
|
|
Increase in Accounts receivable (68250 - 80000) |
(11,750.00) |
|
|
Increase in inventory (145000 - 165000) |
(20,000.00) |
|
|
Decrease in Prepaid Insurance (2000 - 1500) |
500.00 |
|
|
Decrease in Accounts payable (76340 - 148670) |
(72,330.00) |
|
|
Decrease in Salaries payable (20000 - 24500) |
(4,500.00) |
|
|
Decrease in Notes payable (25000 - 75000) |
(50,000.00) |
|
|
NET CASH FROM OPERATING ACTIVITIES (A) |
(60,580.00) |
|
|
CASH FLOW FROM INVESTING ACTIVITIES |
||
|
Sale of Available for sale securities |
74,000.00 |
|
|
Sale of Equipment |
6,000.00 |
|
|
Purchase of Equipment |
(1,45,000.00) |
|
|
NET CASH FROM INVESTING ACTIVITIES (B) |
(65,000.00) |
|
|
CASH FLOW FROM FINANCING ACTIVITIES |
||
|
Issue of Bonds |
2,00,000.00 |
|
|
Payment of dividend |
(20,000.00) |
|
|
NET CASH FROM FINANCING ACTIVITIES (C) |
1,80,000.00 |
|
|
NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C) |
54,420.00 |
|
|
ADD: OPENING CASH AND CASH EQUIVALENTS |
22,955.00 |
|
|
CLOSING CASH AND CASH EQUIVALENTS |
77,375.00 |
|
ekkarill92 answered 1 year agoRelated Solutions
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017...
The Murdock Corporation reported the following balance sheet
data for 2018 and 2017:
2018
2017
Cash
$
96,245
$
33,155
Available-for-sale debt securities (not cash equivalents)
24,000
102,000
Accounts receivable
97,000
83,550
Inventory
182,000
160,300
Prepaid insurance
3,030
3,700
Land, buildings, and equipment
1,284,000
1,142,000
Accumulated depreciation
(627,000
)
(589,000
)
Total assets
$
1,059,275
$
935,705
Accounts payable
$
91,640
$
165,670
Salaries payable
26,800
33,000
Notes payable (current)
40,300
92,000
Bonds payable
217,000
0
Common stock
300,000...
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017...
The Murdock Corporation reported the following balance sheet
data for 2018 and 2017:
2018
2017
Cash
$
82,925
$
25,955
Available-for-sale debt
securities (not cash equivalents)
18,000
90,000
Accounts receivable
85,000
72,750
Inventory
170,000
149,500
Prepaid insurance
1,950
2,500
Land, buildings, and
equipment
1,260,000
1,130,000
Accumulated depreciation
(615,000
)
(577,000
)
Total assets
$
1,002,875
$
893,705
Accounts payable
$
80,840
$
153,670
Salaries payable
22,000
27,000
Notes payable (current)
29,500
80,000
Bonds payable
205,000
0
Common stock
300,000...
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash...
The Murdock Corporation reported the following balance sheet
data for 2018 and 2017:
2018
2017
Cash
$77,375
$22,955
Available-for-sale debt securities
(not cash equivalents)
15,500
85,000
Accounts receivable
80,000
68,250
Inventory
165,000
145,000
Prepaid insurance
1,500
2,000
Land, buildings, and equipment
1,250,000
1,125,000
Accumulated depreciation
(610,000)
(572,000)
Total assets
$979,375
$876,205
Accounts payable
$76,340
$148,670
Salaries payable
20,000
24,500
Notes payable (current)
25,000
75,000
Bonds payable
200,000
0
Common stock
300,000
300,000
Retained earnings
358,035
328,035
Total liabilities and shareholders'...
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...
The Murdock Corporation reported the following balance sheet data for 2016 and 2015: 2016 2015 Cash...
The Murdock Corporation reported the following balance sheet
data for 2016 and 2015: 2016 2015 Cash $ 80,705 $ 24,755
Available-for-sale securities (not cash equivalents) 17,000 88,000
Accounts receivable 83,000 70,950 Inventory 168,000 147,700 Prepaid
insurance 1,770 2,300 Land, buildings, and equipment 1,256,000
1,128,000 Accumulated depreciation (613,000 ) (575,000 ) Total
assets $ 993,475 $ 886,705 Accounts payable $ 79,040 $ 151,670
Salaries payable 21,200 26,000 Notes payable (current) 27,700
78,000 Bonds payable 203,000 0 Common stock 300,000 300,000
Retained...
Calloway Company reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $77,375...
Calloway Company reported the following balance sheet data for
2018 and 2017:
2018
2017
Cash
$77,375
$22,955
Available-for-sale debt securities
(not cash equivalents)
15,500
85,000
Accounts receivable
80,000
68,250
Inventory
165,000
145,000
Prepaid insurance
1,500
2,000
Land, buildings, and equipment
1,250,000
1,125,000
Accumulated depreciation
(610,000)
(572,000)
Total assets
$979,375
$876,205
Accounts payable
$76,340
$148,670
Salaries payable
20,000
24,500
Notes payable (current)
25,000
75,000
Bonds payable
200,000
0
Common stock
300,000
300,000
Retained earnings
358,035
328,035
Total liabilities and shareholders' equity...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018.
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST DEW IT CORPORATION2017 and 2018 Balance SheetsAssetsLiabilities and Owners’ Equity2017201820172018 Current assets Current liabilities Cash$6,600$15,250 Accounts payable$62,400$65,750 Accounts receivable26,60029,750 Notes payable26,40031,500 Inventory75,80092,250 Total$109,000$137,250 Total$88,800$97,250 Long-term debt$50,000$40,000 Owners’ equity Common stock and paid-in
surplus$52,000$52,000 Retained earnings209,200310,750 Net plant and equipment$291,000$362,750 Total$261,200$362,750 Total assets$400,000$500,000 Total liabilities and owners’ equity$400,000$500,000 Prepare the 2018 common-base year balance sheet for Just Dew It.(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)201720172018AssetsCurrent assetsCash$6,600$15,250 ?Accounts receivable26,60029,750 ?Inventory75,80092,250 ?Total$109,000$137,250 ?Fixed assetsNet plant and equipment$291,000$362,750 ?Total assets$400,000$500,000...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST...
Just Dew It Corporation reports the following balance sheet
information for 2017 and 2018.
JUST DEW IT CORPORATION
2017 and 2018 Balance Sheets
Assets
Liabilities and Owners’ Equity
2017
2018
2017
2018
Current assets
Current liabilities
Cash
$
6,560
$
8,600
Accounts payable
$
51,840
$
53,000
Accounts receivable
16,160
22,600
Notes payable
21,600
23,600
Inventory
61,280
74,600
Total
$
84,000
$
105,800
Total
$
73,440
$
76,600
Long-term debt
$
32,000
$
30,000
Owners’ equity
Common stock and...
Just Dew It Corporation reports the following balance sheet information for 2017 and 2018. JUST...
Just Dew It Corporation reports the following balance sheet
information for 2017 and 2018.
JUST DEW IT CORPORATION
2017 and 2018 Balance Sheets
Assets
Liabilities and Owners’ Equity
2017
2018
2017
2018
Current assets
Current liabilities
Cash
$
14,200
$
18,260
Accounts payable
$
58,400
$
61,820
Accounts receivable
19,000
23,100
Notes payable
23,400
25,080
Inventory
51,800
54,780
Total
$
85,000
$
96,140
Total
$
81,800
$
86,900
Long-term debt
$
32,000
$
22,000
Owners’ equity
Common stock and...
The Sage Corporation prepared, for 2017 and 2016, the following balance sheet data: December 31 2017...
The Sage Corporation prepared, for 2017 and 2016, the following
balance sheet data:
December 31
2017
2016
Cash
....................................
$ 87,375
$ 63,750
Available-for-sale securities (not cash
equivalents) .........................
17,250
105,000
Accounts receivable
.....................
90,000
86,250
Merchandise inventory
...................
187,500
163,500
Prepaid insurance
.......................
1,125
1,500
Land, buildings, and equipment
.........
1,378,875
1,087,500
Accumulated depreciation
................
(558,750)
(498,750)
Total
.................................
$1,203,375
$1,008,750
Accounts payable
........................
$ 153,375
$ 236,250
Salaries payable
........................
18,750
26,250
Notes payable--bank (current)
...........
37,500
150,000...
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