The Murdock Corporation reported the following balance sheet data for 2024 and 2023: 2024 2023 Cash $ 98,465 $ 34,355 Available-for-sale debt securities (not cash equivalents) 25,000 104,000 Accounts receivable 99,000 85,350 Inventory 184,000 162,100 Prepaid insurance 3,210 3,900 Land, buildings, and equipment 1,288,000 1,144,000 Accumulated depreciation (629,000) (591,000) Total assets $ 1,068,675 $ 942,705 Accounts payable $ 93,440 $ 167,670 Salaries payable 27,600 34,000 Notes payable (current) 42,100 94,000 Bonds payable 219,000 0 Common stock 300,000 300,000 Retained earnings 386,535 347,035 Total liabilities and shareholders' equity $ 1,068,675 $ 942,705 Additional information for 2024: (1) Sold available-for-sale debt securities costing $79,000 for $85,400. (2) Equipment costing $20,000 with a book value of $6,900 was sold for $8,850. (3) Issued 6% bonds payable at face value, $219,000. (4) Purchased new equipment for $164,000 cash. (5) Paid cash dividends of $29,500. (6) Net income was $69,000. Prepare a statement of cash flows for 2024 in good form using the indirect method for cash flows from operating activities.
The Murdock Corporation reported the following balance sheet data for 2024 and 2023: 2024 2023 Cash $ 98,465 $ 34,355 Available-for-sale debt securities (not cash equivalents) 25,000 104,000 Accounts receivable 99,000 85,350 Inventory 184,000 162,100 Prepaid insurance 3,210 3,900 Land, buildings, and equipment 1,288,000 1,144,000 Accumulated depreciation (629,000) (591,000) Total assets $ 1,068,675 $ 942,705 Accounts payable $ 93,440 $ 167,670 Salaries payable 27,600 34,000 Notes payable (current) 42,100 94,000 Bonds payable 219,000 0 Common stock 300,000 300,000 Retained earnings 386,535 347,035 Total liabilities and shareholders' equity $ 1,068,675 $ 942,705 Additional information for 2024: (1) Sold available-for-sale debt securities costing $79,000 for $85,400. (2) Equipment costing $20,000 with a book value of $6,900 was sold for $8,850. (3) Issued 6% bonds payable at face value, $219,000. (4) Purchased new equipment for $164,000 cash. (5) Paid cash dividends of $29,500. (6) Net income was $69,000. Prepare a statement of cash flows for 2024 in good form using the indirect method for cash flows from operating activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Murdock Corporation reported the following balance sheet data for 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Cash | $ 98,465 | $ 34,355 |
| Available-for-sale debt securities (not cash equivalents) | 25,000 | 104,000 |
| Accounts receivable | 99,000 | 85,350 |
| Inventory | 184,000 | 162,100 |
| Prepaid insurance | 3,210 | 3,900 |
| Land, buildings, and equipment | 1,288,000 | 1,144,000 |
| (629,000) | (591,000) | |
| Total assets | $ 1,068,675 | $ 942,705 |
| Accounts payable | $ 93,440 | $ 167,670 |
| Salaries payable | 27,600 | 34,000 |
| Notes payable (current) | 42,100 | 94,000 |
| Bonds payable | 219,000 | 0 |
| Common stock | 300,000 | 300,000 |
| Retained earnings | 386,535 | 347,035 |
| Total liabilities and shareholders' equity | $ 1,068,675 | $ 942,705 |
Additional information for 2024:
(1) Sold available-for-sale debt securities costing $79,000 for $85,400.
(2) Equipment costing $20,000 with a book value of $6,900 was sold for $8,850.
(3) Issued 6% bonds payable at face value, $219,000.
(4) Purchased new equipment for $164,000 cash.
(5) Paid cash dividends of $29,500.
(6) Net income was $69,000.
Prepare a statement of cash flows for 2024 in good form using the indirect method for cash flows from operating activities.
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