1 The Murdock Corporation reported the following balance sheet data for 2009 and 2008 2009 2008 Cash $77,375 (22,955) Available for sale securities (not cash equivalents) 15,500 85,000 Account receivable 80,000 68,250 Inventory 165,000 145,000 Prepaid insurance 1,500 2,000 Land, building, and equipment 1,250,000 1,125,000 Accumlated depreciation (610,000) (572,000) Total asset $979,375 830,295 Account payable 76,340 102,760 Salaries payable 20,000 24,500 Note payable (current) 25,000 75,000 Bond payable 200,000 0 Common stock 300,000 300,000 Retained earnings 358,035 328,035 Total liabilities and shareholders' equity 979,375 830,295 Additional information for 2009 (1 ) Sold available for sale 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 par, $200,000 (4 ) Purchased new equipment for cash $145,000 (5 ) Paid cash dividends of $20,000 (6 ) Net income was $50,000 Required Prepare a statement of cash flows for 2009 in good form using the indirect method for cash flows from operating activities 1 The Murdock Corporation reported the following balance sheet data for 2009 and 2008 Cash Available for sale securities (not cash equivalents) Account receivable Inventory Prepaid insurance Land, building, and equipment Accumlated depreciation Total asset Account payable Salaries payable Note payable (current) Bond payable Common stock Retained earnings Total liabilities and shareholders' equity 2009 $77,375 2008 (22,955) 15,500 85,000 80,000 68,250 165,000 145,000 1,500 2,000 1,250,000 1,125,000 (610,000) (572,000) $979,375 830,295 76,340 20,000 25,000 200,000 300,000 358,035 979,375 102,760 24,500 75,000 0 300,000 328,035 830,295 Additional information for 2009 (1 ) Sold available for sale 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 par, $200,000 (4 ) Purchased new equipment for cash $145,000 (5 ) Paid cash dividends of $20,000 (6 ) Net income was $50,000 Required Prepare a statement of cash flows for 2009 in good form using the indirect method for cash flows from operating activities

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1. The Murdock Corporation reported the following balance sheet data for 2009 and 2008. 2009 2008 Cash $77,375 (22,955) Available for sale securities (not cash

1. The Murdock Corporation reported the following balance sheet data for 2009 and 2008. 2009 2008 Cash $77,375 (22,955) Available for sale securities (not cash equivalents) 15,500 85,000 Account receivable 80,000 68,250 Inventory 165,000 145,000 Prepaid insurance 1,500 2,000 Land, building, and equipment 1,250,000 1,125,000 Accumlated depreciation (610,000) (572,000) Total asset $979,375 830,295 Account payable 76,340 102,760 Salaries payable 20,000 24,500 Note payable (current) 25,000 75,000 Bond payable 200,000 0 Common stock 300,000 300,000 Retained earnings 358,035 328,035 Total liabilities and shareholders' equity 979,375 830,295 Additional information for 2009: (1.) Sold available-for-sale 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 par, $200,000. (4.) Purchased new equipment for cash $145,000. (5.) Paid cash dividends of $20,000. (6.) Net income was $50,000. Required: Prepare a statement of cash flows for 2009 in good form using the indirect method for cash flows from operating activities. image text in transcribed

1. The Murdock Corporation reported the following balance sheet data for 2009 and 2008. Cash Available for sale securities (not cash equivalents) Account receivable Inventory Prepaid insurance Land, building, and equipment Accumlated depreciation Total asset Account payable Salaries payable Note payable (current) Bond payable Common stock Retained earnings Total liabilities and shareholders' equity 2009 $77,375 2008 (22,955) 15,500 85,000 80,000 68,250 165,000 145,000 1,500 2,000 1,250,000 1,125,000 (610,000) (572,000) $979,375 830,295 76,340 20,000 25,000 200,000 300,000 358,035 979,375 102,760 24,500 75,000 0 300,000 328,035 830,295 Additional information for 2009: (1.) Sold available-for-sale 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 par, $200,000. (4.) Purchased new equipment for cash $145,000. (5.) Paid cash dividends of $20,000. (6.) Net income was $50,000. Required: Prepare a statement of cash flows for 2009 in good form using the indirect method for cash flows from operating activities