Question
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $92,375 $22,955 Available-for-sale debt securities (not cash equivalents) 15,500
The Murdock Corporation reported the following balance sheet data for 2018 and 2017:
| 2018 | 2017 |
Cash | $92,375 | $22,955 |
Available-for-sale debt securities |
|
|
(not cash equivalents) | 15,500 | 85,000 |
Accounts receivable | 80,000 | 68,250 |
Inventory | 165,000 | 145,000 |
Prepaid insurance | 1,500 | 2,000 |
Land, buildings, and equipment | 1,250,000 | 1,125,000 |
Accumulated depreciation | (610,000) | (572,000) |
Total assets | $994,375 | $876,205 |
Accounts payable | $76,340 | $148,670 |
Salaries payable | 20,000 | 24,500 |
Notes payable (current) | 25,000 | 75,000 |
Bonds payable | 200,000 | 0 |
Common stock | 300,000 | 300,000 |
Retained earnings | 373,035 | 328,035 |
Total liabilities and shareholders' equity | $994,375 | $876,205 |
Additional information for 2018:
(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 $65,000.
Required:
Prepare a statement of cash flows for 2018 in good form using the indirect method.
plz type the information, I would like to copy and paste it.
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