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The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $ 95,135 $ 32,555 Available-for-sale debt securities (not cash
The Murdock Corporation reported the following balance sheet data for 2018 and 2017:
2018 | 2017 | |||||||
Cash | $ | 95,135 | $ | 32,555 | ||||
Available-for-sale debt securities (not cash equivalents) | 23,500 | 101,000 | ||||||
Accounts receivable | 96,000 | 82,650 | ||||||
Inventory | 181,000 | 159,400 | ||||||
Prepaid insurance | 2,940 | 3,600 | ||||||
Land, buildings, and equipment | 1,282,000 | 1,141,000 | ||||||
Accumulated depreciation | (626,000 | ) | (588,000 | ) | ||||
Total assets | $ | 1,054,575 | $ | 932,205 | ||||
Accounts payable | $ | 90,740 | $ | 164,670 | ||||
Salaries payable | 26,400 | 32,500 | ||||||
Notes payable (current) | 39,400 | 91,000 | ||||||
Bonds payable | 216,000 | 0 | ||||||
Common stock | 300,000 | 300,000 | ||||||
Retained earnings | 382,035 | 344,035 | ||||||
Total liabilities and shareholders' equity | $ | 1,054,575 | $ | 932,205 | ||||
Additional information for 2018:
- (1.) Sold available-for-sale debt securities costing $77,500 for $83,600.
- (2.) Equipment costing $20,000 with a book value of $6,600 was sold for $8,400.
- (3.) Issued 6% bonds payable at face value, $216,000.
- (4.) Purchased new equipment for $161,000 cash.
- (5.) Paid cash dividends of $28,000.
- (6.) Net income was $66,000.
Required: Prepare a statement of cash flows for 2018 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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