The Murdock Corporation reported the following balance sheet data for 2021 and 2020: 30 13.5/30 points awarded Scored Cash Available-for-sale debt securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity 2021 99,575 25,500 100,000 185,000 3,300 1,290,000 (630,000) $1,073,375 $ 94,340 28,000 43,000 220,000 300,000 388,035 $1,073,375 2020 $ 34,955 105,000 86,250 163,000 4,000 1,145,000 (592,000) $ 946,205 $ 168,670 34,500 95,000 0 300,000 348,035 $ 946,205 Additional information for 2021: (1) Sold available-for-sale debt securities costing $79,500 for $86,000. (2) Equipment costing $20,000 with a book value of $7,000 was sold for $9,000. (3) Issued 6% bonds payable at face value, $220,000. (4) Purchased new equipment for $165,000 cash. (5) Paid cash dividends of $30,000. (6) Net income was $70,000. 30 Required: Prepare a statement of cash flows for 2021 in good form using the indirect method for cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.) 13.5/30 points awarded Scored MURDOCK CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Gain on sale of equipment Gain on sale of available for sale debt securities Changes in operating assets and liabilities: Increase in accounts receivable Increase in inventory Decrease in prepaid insurance Decrease in accounts payable Decrease in salarios payable Payment of notes payable Net cash flows from operating activities Cash flows from investing activities: Sale of equipment Purchase of equipment Sale of available-for-sale debt securities OOO OOOOO X 3 Is 0 OOO OO Net cash flows from investing activities 0 Cash flows from financing activities: Payment of cash dividends Sale of bonds payable Sale of available-for-sale debt securities Payment of cash dividends Net cash flows from financing activities 0 Net increase in cash X Cash balance, January 1 X Cash balance, December 31 0 "Red text indicates no response was expected in a celor a formula-based calculation is incorrect, no points deducted