Statement of Cash Flows

Attached is a question with the solution. The task is very simple and should not take long. You are to edit the solution as if the question was slightly different. Update the statement of cash flows if for 2008 the Total assets were $876,205(instead of $830,295) and Accounts Payable were $148,670(instead of $102,760).

If you want the formulas and any calculations, select the corresponding cell and press F2(Function Key on key board), It will show all calculations and formulas Automatically Question: 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 69,500 Account receivable 80,000 68,250 -11,750 Inventory 165,000 145,000 -20,000 Prepaid insurance 1,500 2,000 500 Land, building, and equipment 1,250,000 1,125,000 -125,000 Accumlated depreciation (610,000) (572,000) 38,000 Total asset $979,375 830,295 -149,080 Account payable Salaries payable Note payable (current) Bond payable Common stock Retained earnings Total liabilities and shareholders' equity 76,340 20,000 25,000 200,000 300,000 358,035 979,375 102,760 26,420 24,500 4,500 75,000 50,000 0 -200,000 300,000 0 328,035 -30,000 830,295 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 fows for 2009 in good form using the indirect method for cash fows from operating activities. Solution: Computation of the Statement of Cash Flow (Indirect Method) Statement of Cash Flow (Indirect Method) The Murdock Corporation For the Year Ended Particulars Amount Amount Net Income $ 50,000 Add: Depreciation $ 53,000 Gain on sale of Securities $ (4,500) Gain on sale of Equipment $ (1,000) Increase in receivables $ (11,750) Increase in Inventories $ (20,000) Decrease in Prepaid insurance. $ 500 Decrease in Accounts Payable. $ (26,420) Decrease in Salaries Payable. $ (4,500) Decrease in Note Payable. $ (50,000) $ (64,670) Net cash provided by operating activities $ (14,670) Cash flow from Investing Activities Equipments purchased Proceeds from Sale of securities Sale of Equipment Net Cash Provided by Investing Activities Cash flow from Financing Activities Sale of bonds payable Dividends Net Cash Provided by Financing Activities Net Changes in Cash flow Opening Balance of Cash Closing Balance of Cash $ $ $ (145,000) 74,000 6,000 $ $ $ (65,000) $ $ $ $ 180,000 100,330 (22,955) 77,375 200,000 (20,000)