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Cash Available-for-sale debt securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance. Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Additional information for 2021: (1) Sold available-for-sale debt securities costing $70,000 for $74,600. (2) Equipment costing $20,000 with a book value of $5,100 was sold for $6,150. (3) Issued 6% bonds payable at face value, $201,000. (4) Purchased new equipment for $146,000 cash. (5) Paid cash dividends of $20,500. (6) Net income was $51.000. 2021 78,485 $ 16,000 81,000 166,000 1,590 1,252,000 (611,000) $984,075 $ 77,240 20,400 25,900 201,000 300,000 359,535 $984,075 2020 23,555 86,000 69,150 145,900 2,100 1,126,000 (573,000) $ 879,705 $ 149,670 25,000 76,000 0 300,000 329,035 $ 879,705

Cash Available-for-sale debt securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance. Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Additional information for 2021: (1) Sold available-for-sale debt securities costing $70,000 for $74,600. (2) Equipment costing $20,000 with a book value of $5,100 was sold for $6,150. (3) Issued 6% bonds payable at face value, $201,000. (4) Purchased new equipment for $146,000 cash. (5) Paid cash dividends of $20,500. (6) Net income was $51.000. 2021 78,485 $ 16,000 81,000 166,000 1,590 1,252,000 (611,000) $984,075 $ 77,240 20,400 25,900 201,000 300,000 359,535 $984,075 2020 23,555 86,000 69,150 145,900 2,100 1,126,000 (573,000) $ 879,705 $ 149,670 25,000 76,000 0 300,000 329,035 $ 879,705

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required: Prepare a statement of cash flows for 2021 in good form using the indirect method for cash flows from operating activities. (Amoi to be deducted should be indicated with a minus sign.) MURDOCK CORPORATION Statement of Cash Flows For the Year Ended December 31, 20211 Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Changes in operating assets and liabilities: 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
Transcribed Image Text:Required: Prepare a statement of cash flows for 2021 in good form using the indirect method for cash flows from operating activities. (Amoi to be deducted should be indicated with a minus sign.) MURDOCK CORPORATION Statement of Cash Flows For the Year Ended December 31, 20211 Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Changes in operating assets and liabilities: 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
TB Problem 21-167 (Algo) The Murdock Corporation reported the following balance sheet data for 2021 and 2020: Cash Available-for-sale debt securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable. Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Additional information for 2021: (1) Sold available-for-sale debt securities costing $70,000 for $74,600. (2) Equipment costing $20,000 with a book value of $5,100 was sold for $6,150. (3) Issued 6% bonds payable at face value, $201,000. (4) Purchased new equipment for $146,000 cash. (5) Paid cash dividends of $20,500. (6) Net income was $51,000. $ 2021 78,485 $ 16,000 81,000 166,000 1,590 $ 1,126,000 (573,000) $984,075 $ 879,705 2020 23,555 86,000 69,150 145,900 2,100 1,252,000 (611,000) 77,240 $ 149,670 20,400 25,000 25,900 76,000 201,000 0 300,000 359,535 $984,075 300,000 329,035 $ 879,705
Transcribed Image Text:TB Problem 21-167 (Algo) The Murdock Corporation reported the following balance sheet data for 2021 and 2020: Cash Available-for-sale debt securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable. Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Additional information for 2021: (1) Sold available-for-sale debt securities costing $70,000 for $74,600. (2) Equipment costing $20,000 with a book value of $5,100 was sold for $6,150. (3) Issued 6% bonds payable at face value, $201,000. (4) Purchased new equipment for $146,000 cash. (5) Paid cash dividends of $20,500. (6) Net income was $51,000. $ 2021 78,485 $ 16,000 81,000 166,000 1,590 $ 1,126,000 (573,000) $984,075 $ 879,705 2020 23,555 86,000 69,150 145,900 2,100 1,252,000 (611,000) 77,240 $ 149,670 20,400 25,000 25,900 76,000 201,000 0 300,000 359,535 $984,075 300,000 329,035 $ 879,705
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