TB Problem 21-167 (Algo) The Murdock Corporation reported the following balance sheet data for 2021 and 2020: 2021 2020 Cash $ 96,245 $ 33,155 Available-for-sale debt securities (not cash equivalents) 24,000 102,000 Accounts receivable 97,000 83,550 Inventory 182,000 160,300 Prepaid insurance 3,030 3,700 Land, buildings, and equipment 1,284,000 1,142,000 Accumulated depreciation (627,000 ) (589,000 ) Total assets $ 1,059,275 $ 935,705 Accounts payable $ 91,640 $ 165,670 Salaries payable 26,800 33,000 Notes payable (current) 40,300 92,000 Bonds payable 217,000 0 Common stock 300,000 300,000 Retained earnings 383,535 345,035 Total liabilities and shareholders' equity $ 1,059,275 $ 935,705 Additional information for 2021: (1) Sold available-for-sale debt securities costing $78,000 for $84,200. (2) Equipment costing $20,000 with a book value of $6,700 was sold for $8,550. (3) Issued 6% bonds payable at face value, $217,000. (4) Purchased new equipment for $162,000 cash. (5) Paid cash dividends of $28,500. (6) Net income was $67,000. Required: Prepare a statement of cash flows for 2021 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 CORPORATION Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Net income $67,000 Adjustments for noncash effects: Depreciation expense 38,000 Changes in operating assets and liabilities: Gain on sale of available-for-sale debt securities Gain on sale of equipment Increase in accounts receivable Net cash flows from operating activities $105,000 Cash flows from investing activities: Sale of equipment 8,550 Purchase of equipment 162,000 Payment of notes payable Net cash flows from investing activities 170,550 Cash flows from financing activities: Payment of notes payable (51,700) Sale of bonds payable 217,000 Payment of cash dividends (28,500) Net cash flows from financing activities 136,800 Net increase in cash 63,090 Cash balance, January 1 33,155 Cash balance, December 31 $96,245 hese are the selected anaswer provide to select accordingly towards the cash statement: decrease in accounts payable, decrease in accounts receivable, decrease in inventory, decrease in prepaid insurance, decrease in salaries payable, depreciation expense, gain on sale of available for sale debt securities, gain on sale of equipment, increase in accounts payable, increase in account receivable, increase in inventory, increase in prepaid insurance, increase in salaries payable, loss of sale of available for slae securities, loss of sale of equipment, payment of cash dividends, payment of notes payable, purchase of equipment, sale of available for sale debt securities, sale of bonds payable, sale of equipment/ With these selection please out them into their designed areas to changes in oprerating assests and liabilities, cash flows from investing activities, cash flow from financing activities.

Question

TB Problem 21-167 (Algo)

The Murdock Corporation reported the following balance sheet data for 2021 and 2020:

	2021		2020
Cash	$	96,245		$	33,155
Available-for-sale debt securities (not cash equivalents)		24,000			102,000
Accounts receivable		97,000			83,550
Inventory		182,000			160,300
Prepaid insurance		3,030			3,700
Land, buildings, and equipment		1,284,000			1,142,000
Accumulated depreciation		(627,000	)		(589,000	)
Total assets	$	1,059,275		$	935,705
Accounts payable	$	91,640		$	165,670
Salaries payable		26,800			33,000
Notes payable (current)		40,300			92,000
Bonds payable		217,000			0
Common stock		300,000			300,000
Retained earnings		383,535			345,035
Total liabilities and shareholders' equity	$	1,059,275		$	935,705

Additional information for 2021:

(1) Sold available-for-sale debt securities costing $78,000 for $84,200.
(2) Equipment costing $20,000 with a book value of $6,700 was sold for $8,550.
(3) Issued 6% bonds payable at face value, $217,000.
(4) Purchased new equipment for $162,000 cash.
(5) Paid cash dividends of $28,500.
(6) Net income was $67,000.

Required:
Prepare a statement of cash flows for 2021 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 CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash flows from operating activities:
Net income	$67,000
Adjustments for noncash effects:
Depreciation expense	38,000


Changes in operating assets and liabilities:
Gain on sale of available-for-sale debt securities
Gain on sale of equipment
Increase in accounts receivable



Net cash flows from operating activities		$105,000
Cash flows from investing activities:
Sale of equipment	8,550
Purchase of equipment	162,000
Payment of notes payable

Net cash flows from investing activities		170,550
Cash flows from financing activities:
Payment of notes payable	(51,700)
Sale of bonds payable	217,000
Payment of cash dividends	(28,500)

Net cash flows from financing activities		136,800
Net increase in cash		63,090
Cash balance, January 1		33,155
Cash balance, December 31		$96,245

hese are the selected anaswer provide to select accordingly towards the cash statement:

decrease in accounts payable, decrease in accounts receivable, decrease in inventory, decrease in prepaid insurance, decrease in salaries payable, depreciation expense, gain on sale of available for sale debt securities, gain on sale of equipment, increase in accounts payable, increase in account receivable, increase in inventory, increase in prepaid insurance, increase in salaries payable, loss of sale of available for slae securities, loss of sale of equipment, payment of cash dividends, payment of notes payable, purchase of equipment, sale of available for sale debt securities, sale of bonds payable, sale of equipment/

With these selection please out them into their designed areas to changes in oprerating assests and liabilities, cash flows from investing activities, cash flow from financing activities.