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 $ 2021 85,145 $ 19,000 87,000 172,000 2,130 $ 1,264,000 1,132,000 (617,000) (579,000) $1,012,275 $ 900,705 2020 27,155 92,000 74,550 151,300 2,700 82,640 $ 155,670 28,000 82,000 22,800 31,300 207,000 300,000 368,535 $1,012,275 300,000 335,035 $ 900,705
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 $ 2021 85,145 $ 19,000 87,000 172,000 2,130 $ 1,264,000 1,132,000 (617,000) (579,000) $1,012,275 $ 900,705 2020 27,155 92,000 74,550 151,300 2,700 82,640 $ 155,670 28,000 82,000 22,800 31,300 207,000 300,000 368,535 $1,012,275 300,000 335,035 $ 900,705
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 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 i
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 $73,000 for $78,200
(2) Equipment costing $20,000 with a book value of $5,700 was sold for $7,050.
(3) Issued 6% bonds payable at face value, $207,000
(4) Purchased new equipment for $152.000 cash
(5) Paid cash dividends of $23,500
(6) Net income was $57,000.
2021
85,145 $
19,000
87,000
172,000
2,130
1,264,000
(617,000)
$1,912,275
$
$ 82,640
22,800
31,300
207,000
300,000
368,535
$1,012,275
2020
27,155
92,000
74,558
151,300
2,700
1,132,000
(579,000)
$ 900,705
$ 155,670
28,000
82,000
e
300,000
335,035
$ 900,705
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa880cc3d-71b2-44bc-9eb8-ccb18aa2c0ed%2F67f9c5ca-1aba-4424-b987-ef38040c5ab3%2Fqz7gj6c_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 i
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 $73,000 for $78,200
(2) Equipment costing $20,000 with a book value of $5,700 was sold for $7,050.
(3) Issued 6% bonds payable at face value, $207,000
(4) Purchased new equipment for $152.000 cash
(5) Paid cash dividends of $23,500
(6) Net income was $57,000.
2021
85,145 $
19,000
87,000
172,000
2,130
1,264,000
(617,000)
$1,912,275
$
$ 82,640
22,800
31,300
207,000
300,000
368,535
$1,012,275
2020
27,155
92,000
74,558
151,300
2,700
1,132,000
(579,000)
$ 900,705
$ 155,670
28,000
82,000
e
300,000
335,035
$ 900,705
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.)
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