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The Murdock Corporation reported the following balance sheet data for 2016 and 2015: 2016 2015 Cash $ 90,695 $ 30,155 Available-for-sale securities (not cash equivalents)
The Murdock Corporation reported the following balance sheet data for 2016 and 2015: |
2016 | 2015 | |||||
Cash | $ | 90,695 | $ | 30,155 | ||
Available-for-sale securities (not cash equivalents) | 21,500 | 97,000 | ||||
Accounts receivable | 92,000 | 79,050 | ||||
Inventory | 177,000 | 155,800 | ||||
Prepaid insurance | 2,580 | 3,200 | ||||
Land, buildings, and equipment | 1,274,000 | 1,137,000 | ||||
Accumulated depreciation | (622,000 | ) | (584,000 | ) | ||
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Total assets | $ | 1,035,775 | $ | 918,205 | ||
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Accounts payable | $ | 87,140 | $ | 160,670 | ||
Salaries payable | 24,800 | 30,500 | ||||
Notes payable (current) | 35,800 | 87,000 | ||||
Bonds payable | 212,000 | 0 | ||||
Common stock | 300,000 | 300,000 | ||||
Retained earnings | 376,035 | 340,035 | ||||
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Total liabilities and shareholders' equity | $ | 1,035,775 | $ | 918,205 | ||
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Additional information for 2016: |
Sold available-for-sale securities costing $75,500 for $81,200. |
Equipment costing $20,000 with a book value of $6,200 was sold for $7,800. |
Issued 6% bonds payable at face value, $212,000. |
Purchased new equipment for $157,000 cash. |
Paid cash dividends of $26,000. |
Net income was $62,000. |
Required: |
Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.) |
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