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 Net cash flows from investing activities 170,550 Cash flows from financing activities: Net cash flows from financing activities 0 Net increase in cash 63,090 Cash balance, January 1 33,155 Cash balance, December 31 $96,245 please correct me the answer provide are wrong and please provide calcuations that would be great

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 Net cash flows from investing activities 170,550 Cash flows from financing activities: Net cash flows from financing activities 0 Net increase in cash 63,090 Cash balance, January 1 33,155 Cash balance, December 31 $96,245 please correct me the answer provide are wrong and please provide calcuations that would be great

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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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


Net cash flows from investing activities		170,550
Cash flows from financing activities:




Net cash flows from financing activities		0
Net increase in cash		63,090
Cash balance, January 1		33,155
Cash balance, December 31		$96,245

please correct me the answer provide are wrong and please provide calcuations that would be great

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