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 $ 86,255 $ 27,755 19,500 93,000 88,000 75,450 173,000 152,200 2,220 2,800 1,266,000 1,133,000 (618,000) (580,000) Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings $1,016,975 $ 904,205 $ 83,540 $156,670 23,200 32,200 208,000 28,500 83,000 0 300,000 300,000 370,035 336,035 Total liabilities and shareholders' equity $ 1,016,975 $904,205 Additional information for 2016: Sold available-for-sale securities costing $73,500 for $78,800. Equipment costing $20,000 with a book value of $5,800 was sold for $7,200. Issued 6% bonds payable at face value, $208,000. Purchased new equipment for $153,000 cash. Paid cash dividends of $24,000. Net income was $58,000. 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:
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 $ 86,255 $ 27,755 19,500 93,000 88,000 75,450 173,000 152,200 2,220 2,800 1,266,000 1,133,000 (618,000) (580,000) Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings $1,016,975 $ 904,205 $ 83,540 $156,670 23,200 32,200 208,000 28,500 83,000 0 300,000 300,000 370,035 336,035 Total liabilities and shareholders' equity $ 1,016,975 $904,205 Additional information for 2016: Sold available-for-sale securities costing $73,500 for $78,800. Equipment costing $20,000 with a book value of $5,800 was sold for $7,200. Issued 6% bonds payable at face value, $208,000. Purchased new equipment for $153,000 cash. Paid cash dividends of $24,000. Net income was $58,000. 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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no
Transcribed Image Text: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
$ 86,255 $ 27,755
19,500
93,000
88,000
75,450
173,000
152,200
2,220
2,800
1,266,000
1,133,000
(618,000) (580,000)
Total assets
Accounts payable
Salaries payable
Notes payable (current)
Bonds payable
Common stock
Retained earnings
$1,016,975 $ 904,205
$ 83,540 $156,670
23,200
32,200
208,000
28,500
83,000
0
300,000 300,000
370,035
336,035
Total liabilities and shareholders' equity $ 1,016,975 $904,205
Additional information for 2016:
Sold available-for-sale securities costing $73,500 for $78,800.
Equipment costing $20,000 with a book value of $5,800 was sold for $7,200.
Issued 6% bonds payable at face value, $208,000.
Purchased new equipment for $153,000 cash.
Paid cash dividends of $24,000.
Net income was $58,000.
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:
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