The Murdock Corporation reported the following balance sheet data for 2016 and 2015:

Additional information for 2016:
(1. )Sold available-for-sale securities costing $69,500 for $74,000.
(2. )Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
(3. )Issued 6% bonds payable at face value,$200,000.
(4. )Purchased new equipment for $145,000 cash.
(5. )Paid cash dividends of $20,000.
(6. )Net income was $50,000.
Required:
Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities.

Question

The Murdock Corporation reported the following balance sheet data for 2016 and 2015:
  
Additional information for 2016:
(1. )Sold available-for-sale securities costing $69,500 for $74,000.
(2. )Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
(3. )Issued 6% bonds payable at face value,$200,000.
(4. )Purchased new equipment for $145,000 cash.
(5. )Paid cash dividends of $20,000.
(6. )Net income was $50,000.
Required:
Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities.

Quizplus · Accepted Answer

The Answer of The Murdock Corporation reported the following balance sheet data for 2016 and 2015:
  
Additional information for 2016:
(1. )Sold available-for-sale securities costing $69,500 for $74,000.
(2. )Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
(3. )Issued 6% bonds payable at face value,$200,000.
(4. )Purchased new equipment for $145,000 cash.
(5. )Paid cash dividends of $20,000.
(6. )Net income was $50,000.
Required:
Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities.

The Murdock Corporation Reported the Following Balance Sheet Data for 2016