Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Murdock Corporation reported the following balance sheet data for 2016 and 2015: Cash Available-for-sale securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land,

image text in transcribedimage text in transcribed

The Murdock Corporation reported the following balance sheet data for 2016 and 2015: Cash Available-for-sale securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation 2016 2015 $ 88,475 $ 28,955 20,500 95,000 90,000 77,250 175,000 154,000 2,400 3,000 1,270,000 1,135,000 (620,000) (582,000) Total assets $ 1,026,375 $ 911,205 $ Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings 85,340 $ 158,670 24,000 29,500 34,000 85,000 210,000 0 300,000 300,000 373,035 338,035 Total liabilities and shareholders' equity $ 1,026,375 $ 911,205 Additional information for 2016: Sold available-for-sale securities costing $74,500 for $80,000. Equipment costing $20,000 with a book value of $6,000 was sold for $7,500. Issued 6% bonds payable at face value, $210,000. Purchased new equipment for $155,000 cash. Paid cash dividends of $25,000. Net income was $60,000. 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.) MURDOCK COMPANY Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities: Adjustments for noncash effects: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Cash balance, January 1 Cash balance, December 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

5th Edition

0471542830, 9780471542834

More Books

Students also viewed these Accounting questions

Question

What is the use of bootstrap program?

Answered: 1 week ago

Question

What is a process and process table?

Answered: 1 week ago

Question

What is Industrial Economics and Theory of Firm?

Answered: 1 week ago