Question
The Mass Media Corporation reported the following balance sheet data for 2009 and 2008. Cash Available-for-sale securities (not cash equivalents) Accounts receivable 2009 2008 $
The Mass Media Corporation reported the following balance sheet data for 2009 and 2008. Cash Available-for-sale securities (not cash equivalents) Accounts receivable 2009 2008 $ 77,375 $ (22,955) 15,500 85,000 80,000 68,250 165,000 145,000 1,500 2,000 Inventory Prepaid insurance Land, buildings, and equipment 1,250,000 Accumulated depreciation Total assets Accounts payable (610,000) $ 979,375 1,125,000 (572,000) $ 830,295 $ 76,340 $ 102,760 Salaries payable Notes payable (current) 20,000 25,000 24,500 75,000 Bonds payable Common stock 200,000 0 300,000 300,000 Retained earnings 358,035 328,035 Total liabilities and shareholders' equity $ 979,375 $ 830,295 Additional information for 2009: (1.) Net income was $50,000. (2) Sold available-for-sale securities costing $69,500 for $74,000. (3.) Equipment costing $20,000 with a book value of $5,000 was sold for $6,000. (4.) Issued 6% bonds payable at par, $200,000. (5.) Purchased new equipment for cash $145,000. (6.) Paid cash dividends of $20,000. 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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