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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,
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
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