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Morrison Company is in third year of its operation with experiencing success also wants to expand its operations to grow in future. The comparative balance

Morrison Company is in third year of its operation with experiencing success also wants to expand its operations to grow in future. The comparative balance sheets, income statement and selected data for the year 2015 are given below. [7.5] Morrison Company Comparative balance sheets accounts December 31st, 2015 Debit balances 2015 (BDT) 2014 (BDT) Cash 54000 37000 Accounts Receivable 68000 16000 Merchandise Inventory 54000 10000 Prepaid expenses 4000 6000 Investment 28000 46000 Equipment 193000 68000 Accumulated depreciation- Equipment (28000) (10000) Buildings 200000 200000 Accumulated depreciation- Building (21000) (11000) Land 45000 70000 Totals 597,000 432,000 Credit balances Accounts Payable 28,000 46,000 Accrued Expense 5000 0 Long term notes payables 20000 40000 Bonds Payable 118000 150000 Common stock 220000 60,000 Retained earnings 206000 136,000 Totals 569,000 432,000 Additional Data: i) Operating expenses include depreciation expanse of 33000 and amortization of prepaid expenses of 2000. ii) Land was sold at its book value for cash iii) Cash dividend was declared and paid. iv) Interest expenses of 12000 were paid in cash and treat it as financial cost. v) Investment cost 30000 was sold for 35000. vi) Equipment with a cost of 166000 was purchased for cash. Equipment with a cost of 41000 and a book value of 36000 was sold for 34000 cash. vii) Bonds were redeemed at their book value for cash viii) Common stock was issued for cash. Morrison's 2015 income statement is as follows. Sales 890000 (-) Cost of goods sold 465000 (-) Operating Expenses 221000 (-) Interest expense 12000 (+) Gain on sale of investment 5000 (-)Loss on sale of equipment 2000 695000 Income from operations 195000 Income taxes 65000 Net income 130000 Prepare a statement of cash flows during the year using the indirect method

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