The Murdock Corporation reported the following balance sheet data for 2024 and 2023: 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 2024 $ 80,705 17,000 83,000 168,000 1,770 1,256,000 1,128,000 (613,000) (575,000) $993,475 $886,705 $ 79,040 21, 200 27,700 203,000 300,000 362,535 $ 993,475 2023 $ 24,755 88,000 70,950 147,700 2,300 Additional Information for 2024: (1) Sold available-for-sale debt securities costing $71,000 for $75,800. (2) Equipment costing $20,000 with a book value of $5,300 was sold for $6,450. (3) Issued 6% bonds payable at face value, $203,000. (4) Purchased new equipment for $148,000 cash. (5) Pald cash dividends of $21,500. (6) Net Income was $53,000. $ 151,670 26,000 78,000 0 300,000 331,035 $886,705 Required: Prepare a statement of cash flows for 2024 In good form using the Indirect method for cash flows from operating activities.

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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For the Year Ended December 31, 2024
Cash flows from operating activities:
Net income
Adjustments for noncash effects:
Depreciation expense
Gain on sale of available-for-sale debt securities
Gain on sale of equipment
Changes in operating assets and liabilities:
Increase in accounts receivable
Decrease in accounts payable
Increase in inventory
Decrease in salaries payable
Decrease in prepaid insurance
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
| Cach balanss Issus 4
$
53,000
52,700
(4,800)
(1,150)
(12,050)
72,630
(20,300)
4,800
530
$
145,360
0
0
Transcribed Image Text:For the Year Ended December 31, 2024 Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Gain on sale of available-for-sale debt securities Gain on sale of equipment Changes in operating assets and liabilities: Increase in accounts receivable Decrease in accounts payable Increase in inventory Decrease in salaries payable Decrease in prepaid insurance 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 | Cach balanss Issus 4 $ 53,000 52,700 (4,800) (1,150) (12,050) 72,630 (20,300) 4,800 530 $ 145,360 0 0
The Murdock Corporation reported the following balance sheet data for 2024 and 2023:
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
2024
$ 80,705
17,000
83,000
168,000
1,770
1,256,000
(613,000)
$ 993,475
$ 79,040
21, 200
27,700
203,000
300,000
362,535
$ 993,475
Additional Information for 2024:
(1) Sold available-for-sale debt securities costing $71,000 for $75,800.
(2) Equipment costing $20,000 with a book value of $5,300 was sold for $6,450.
(3) Issued 6% bonds payable at face value, $203,000.
(4) Purchased new equipment for $148,000 cash.
(5) Pald cash dividends of $21,500.
(6) Net Income was $53,000.
2023
$ 24,755
88,000
70,950
147,700
2,300
1,128,000
(575,000)
$ 886,705
$ 151,670
26,000
78,000
8
300,000
331,035
$ 886,705
Required:
Prepare a statement of cash flows for 2024 in good form using the Indirect method for cash flows from operating activities.
Note: Amounts to be deducted should be indicated with a minus sign.
Transcribed Image Text:The Murdock Corporation reported the following balance sheet data for 2024 and 2023: 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 2024 $ 80,705 17,000 83,000 168,000 1,770 1,256,000 (613,000) $ 993,475 $ 79,040 21, 200 27,700 203,000 300,000 362,535 $ 993,475 Additional Information for 2024: (1) Sold available-for-sale debt securities costing $71,000 for $75,800. (2) Equipment costing $20,000 with a book value of $5,300 was sold for $6,450. (3) Issued 6% bonds payable at face value, $203,000. (4) Purchased new equipment for $148,000 cash. (5) Pald cash dividends of $21,500. (6) Net Income was $53,000. 2023 $ 24,755 88,000 70,950 147,700 2,300 1,128,000 (575,000) $ 886,705 $ 151,670 26,000 78,000 8 300,000 331,035 $ 886,705 Required: Prepare a statement of cash flows for 2024 in good form using the Indirect method for cash flows from operating activities. Note: Amounts to be deducted should be indicated with a minus sign.
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