The Murdock Corporation reported the following balance sheet data for 2018 and 2017: Additional information for 2018:
(1.) Sold available-for-sale debt 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 2018 in good form using the indirect method for cash flows from operating activities.

Question

The Murdock Corporation reported the following balance sheet data for 2018 and 2017:  Additional information for 2018:
(1.) Sold available-for-sale debt 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 2018 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 2018 and 2017:  Additional information for 2018:
(1.) Sold available-for-sale debt 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 2018 in good form using the indirect method for cash flows from operating activities.

The Murdock Corporation Reported the Following Balance Sheet Data for 2018