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Need help preparing a statement of cash flows using thr indirect method. There is a balance sheet and outline also attached The Murdock Corporation (MC)
Need help preparing a statement of cash flows using thr indirect method. There is a balance sheet and outline also attached
The Murdock Corporation (MC) reported the following balance sheet data for 2022 and 2021: Additional information for 2022: (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: Use the indirect method to prepare a statement of cash flows (SCF) for 2022. In addition, \begin{tabular}{|c|c|c|c|} \hline 1 & \multicolumn{3}{|c|}{ Murdock Corporation } \\ \hline 2 & \multicolumn{3}{|c|}{ Balance Sheet } \\ \hline 3 & \multicolumn{3}{|c|}{ For the year ended 12/31/2022} \\ \hline 4 & & 2022 & 2021 \\ \hline 5 & & & \\ \hline 6 & Cash & $77,375 & $22,955 \\ \hline 7 & Available-for-sale debt securities & & \\ \hline 8 & (not cash equivalents) & 15,500 & 85,000 \\ \hline 9 & Accounts receivable & 80,000 & 68,250 \\ \hline 10 & Inventory & 170,000 & 145,000 \\ \hline 11 & Prepaid insurance & 1,500 & 2,000 \\ \hline 12 & Land, buildings, and equipment & 1,250,000 & 1,125,000 \\ \hline 13 & Accumulated depreciation & (610,000) & (572,000) \\ \hline 14 & Total assets & $984,375 & $876,205 \\ \hline 15 & Accounts payable & $81,340 & $148,670 \\ \hline 16 & Salaries payable & 20,000 & 24,500 \\ \hline 17 & Notes payable (current) & 25,000 & 75,000 \\ \hline 18 & Bonds payable & 200,000 & 0 \\ \hline 9 & Common stock & 300,000 & 300,000 \\ \hline 10 & Retained earnings & 358,035 & 328,035 \\ \hline & Total liabilities and shareholders' equity & $984,375 & $876,205 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Cash flows from operating activities: & & \\ \hline Net income & & \\ \hline Adjustments for noncash effects: & & \\ \hline 1) Depreciation expense & (4,500) & \\ \hline 2) Gain on salc of available-for-sale debt securities & & \\ \hline 3) Gain on sale of equipment & & \\ \hline Changes in operating assets and liabilities: & & \\ \hline 1) & & \\ \hline 2) & & \\ \hline 3) & & \\ \hline 4) & & \\ \hline 5) & & \\ \hline Net cash flows from operating activities & & \\ \hline Cash flows from investing activities: & & \\ \hline 1) & & \\ \hline 2) & & \\ \hline 3) & & \\ \hline Net cash flows from investing activities & & \\ \hline & & \\ \hline Cash flows from financing activities: & & \\ \hline 1) & & \\ \hline 2) & & \\ \hline 3) & & \\ \hline Net cash flows from financing activities & & \\ \hline Cash balance, January 1 & & \\ \hline \end{tabular} Step by Step Solution
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