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 $ 87,365 20,000 89,000 2023 $ 28,355 94,000 76,350 174,000 153,100 2,310 2,900 1,268,000 (619,000) $ 1,021,675 1,134,000 (581,000) $ 907,705 $ 84,440 $ 157,670 23,600 29,000 33,100 84,000 209,000 300,000 300,000 371,535 337,035 $1,021,675 $ 907,705 Additional information for 2024: 1. Sold available-for-sale debt securities costing $74,000 for $79,400. 2. Equipment costing $20,000 with a book value of $5,900 was sold for $7,350. 3. Issued 6% bonds payable at face value, $209,000. 4. Purchased new equipment for $154,000 cash. 5. Paid cash dividends of $24,500. 6. Net income was $59,000. Required: 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: 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 $ 87,365 20,000 89,000 2023 $ 28,355 94,000 76,350 174,000 153,100 2,310 2,900 1,268,000 (619,000) $ 1,021,675 1,134,000 (581,000) $ 907,705 $ 84,440 $ 157,670 23,600 29,000 33,100 84,000 209,000 300,000 300,000 371,535 337,035 $1,021,675 $ 907,705 Additional information for 2024: 1. Sold available-for-sale debt securities costing $74,000 for $79,400. 2. Equipment costing $20,000 with a book value of $5,900 was sold for $7,350. 3. Issued 6% bonds payable at face value, $209,000. 4. Purchased new equipment for $154,000 cash. 5. Paid cash dividends of $24,500. 6. Net income was $59,000. Required: Prepare a statement of cash flows for 2024 in good form using the indirect method for cash flows from operating activities.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 61BE: Debt Management Ratios Glow Corporation provides annual and quarterly financial data to the public....
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning