Question
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $ 91,805 $ 30,755 Available-for-sale debt securities (not cash
The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $ 91,805 $ 30,755 Available-for-sale debt securities (not cash equivalents) 22,000 98,000 Accounts receivable 93,000 79,950 Inventory 178,000 156,700 Prepaid insurance 2,670 3,300 Land, buildings, and equipment 1,276,000 1,138,000 Accumulated depreciation (623,000 ) (585,000 ) Total assets $ 1,040,475 $ 921,705 Accounts payable $ 88,040 $ 161,670 Salaries payable 25,200 31,000 Notes payable (current) 36,700 88,000 Bonds payable 213,000 0 Common stock 300,000 300,000 Retained earnings 377,535 341,035 Total liabilities and shareholders' equity $ 1,040,475 $ 921,705 Additional information for 2018: (1.) Sold available-for-sale debt securities costing $76,000 for $81,800. (2.) Equipment costing $20,000 with a book value of $6,300 was sold for $7,950. (3.) Issued 6% bonds payable at face value, $213,000. (4.) Purchased new equipment for $158,000 cash. (5.) Paid cash dividends of $26,500. (6.) Net income was $63,000. Prepare a statement of cash flows for 2018 in good form using the indirect method for cash flows from operating activities.
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