Statement of Cash FlowsAttached is a question with the solution. The task is very simple and should not take long. You are to edit the solution as if the question was slightly different. Update the statement of cash flows if for 2008 the Total assets were $876,205(instead of $830,295) and Accounts Payable were $148,670(instead of $102,760). If you want the formulas and any calculaTons, select the corresponding cell and press F2(FuncTon Key on key board),
It will show all calculaTons and formulas AutomaTcally
QuesTon:
2009
2008
Cash
$77,375
(22,955)
Available for sale securites
(noT cash equivalenTs)
15,500
85,000
69,500
AccounT receivable
80,000
68,250
-11,750
InvenTory
165,000
145,000
-20,000
Prepaid insurance
1,500
2,000
500
Land, building, and equipmenT
1,250,000
1,125,000
-125,000
AccumlaTed depreciaton
(610,000)
(572,000)
38,000
±oTal asseT
$979,375
830,295
-149,080
AccounT payable
76,340
102,760
26,420
Salaries payable
20,000
24,500
4,500
NoTe payable (currenT)
25,000
75,000
50,000
Bond payable
200,000
-200,000
Common sTock
300,000
300,000
ReTained earnings
358,035
328,035
-30,000
±oTal liabilites and shareholders' equiTy
979,375
830,295
AddiTonal informaTon for 2009:
(1.) Sold available-for-sale securites costng $69,500 for $74,000.
(2.) EquipmenT costng $20,000 wiTh a book value of $5,000 was sold for $6,000.
(3.) Issued 6% bonds payable aT par, $200,000.
(4.) Purchased new equipmenT for cash $145,000.
(5.) Paid cash dividends of $20,000.
(6.) NeT income was $50,000.
Required:
SoluTon: ComputaTon of the Statement of Cash Flow (Indirect Method)
Statement of Cash Flow (Indirect Method)
±he Murdock CorporaTon
For the Year Ended
ParTculars
Amount
Amount
NeT Income
$
50,000
Add: Depreciaton
$
53,000
Gain on sale of Securites
$
(4,500)
Gain on sale of EquipmenT
$
(1,000)
Increase in receivables
$
(11,750)
Increase in InvenTories
$
(20,000)
Decrease in Prepaid insurance.
$
500
Decrease in AccounTs Payable.
$
(26,420)
Decrease in Salaries Payable.
$
(4,500)
Decrease in NoTe Payable.
$
(50,000)
$
(64,670)
Net cash provided by operaTng acTviTes
$
(14,670)
Cash ²ow from InvesTng AcTviTes
EquipmenTs purchased
$
(145,000)
Proceeds from Sale of securites
$
74,000
Sale of EquipmenT
$
6,000
Net Cash Provided by InvesTng AcTviTes
$
(65,000)
Cash ²ow from Financing AcTviTes
Sale of bonds payable
$
200,000
Dividends
$
(20,000)
Net Cash Provided by Financing AcTviTes
$
180,000
Net Changes in Cash ²ow
$
100,330
Opening Balance of Cash
$
(22,955)
Closing Balance of Cash
$
77,375
1. ±he Murdock Corporaton reporTed The following balance sheeT daTa for 2009 and 2008.
Prepare a sTaTemenT of cash Fows for 2009 in good form using The indirecT meThod for cash Fows from operatng actvites.
This question was answered on: May 23, 2022
Solution~00021147721547.zip (25.37 KB)
This attachment is locked
Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)
Answered
QUALITYApproved
DATE ANSWEREDMay 23, 2022
EXPERTTutor
ANSWER RATING
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
