? newconnect.mheducation.com Connect Midterm exam 8-10PM Saved The Murdock Corpo
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? newconnect.mheducation.com Connect Midterm exam 8-10PM Saved The Murdock Corporation reported the following balance sheet data for 2016 and 2015: 14 2016 2015 Cash Available-for-sale securities (not cash 87,365 28,355 20,000 94,000 equivalents) 01:09.46Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation 89,000 76,350 174,000 153,100 2,310 2,900 1,268,000 1134,000 (619,000) (581,000) Total assets 1,021,675 $907,705 Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings $ 84,440 157,670 23,600 29,000 33,100 84,000 0 300,000 300,000 371,535 337035 209,000 Total liabilities and shareholders' equity $ 1,021,675 $907705 Additional information for 2016: K Prev 14 of 28 NextExplanation / Answer
Answer
Cash flows from Operating Activities:
Net Income
$ 59,000.00
Adjustments for non cash effects:
Gain on sale of Equipment
$ (1,450.00)
Gain on sale of securities
$ (5,400.00)
Decrease in Notes payable (Current)
$ (50,900.00)
Decrease in Salaries payable
$ (5,400.00)
Decrease in Accounts payable
$ (73,230.00)
Depreciation expense
$ 52,100.00
Decrease in Prepaid Insurance
$ 590.00
Increase in Inventory
$ (20,900.00)
Increase in Accounts receiavbles
$ (12,650.00)
Net Cash flows from Operating activities
$ (58,240.00)
Cash flows from Investing activities:
Equipment purchased
$ (1,54,000.00)
Sale of Equipment
$ 7,350.00
Sale of Securities
$ 79,400.00
Net Cash flows from investing activities
$ (67,250.00)
Cash flows from Financing activities:
Dividend paid
$ (24,500.00)
Bonds Payable issued
$ 2,09,000.00
Net cash flows from financing activities
$ 1,84,500.00
Net Increase in cash
$ 59,010.00
Cash balance jan 1
$ 28,355.00
Cash balance Dec 31
$ 87,365.00
Securities sold for
$ 79,400.00
Cost of sold securities
$ 74,000.00
Gain on sale
$ 5,400.00
Ending Accumulated depreciation
$ 6,19,000.00
Depreciation of sold equipment [20000 - 5900]
$ 14,100.00
Beginning Accumulated Depreciation
$ (5,81,000.00)
Depreciation expense for the year
$ 52,100.00
Cash flows from Operating Activities:
Net Income
$ 59,000.00
Adjustments for non cash effects:
Gain on sale of Equipment
$ (1,450.00)
Gain on sale of securities
$ (5,400.00)
Decrease in Notes payable (Current)
$ (50,900.00)
Decrease in Salaries payable
$ (5,400.00)
Decrease in Accounts payable
$ (73,230.00)
Depreciation expense
$ 52,100.00
Decrease in Prepaid Insurance
$ 590.00
Increase in Inventory
$ (20,900.00)
Increase in Accounts receiavbles
$ (12,650.00)
Net Cash flows from Operating activities
$ (58,240.00)
Cash flows from Investing activities:
Equipment purchased
$ (1,54,000.00)
Sale of Equipment
$ 7,350.00
Sale of Securities
$ 79,400.00
Net Cash flows from investing activities
$ (67,250.00)
Cash flows from Financing activities:
Dividend paid
$ (24,500.00)
Bonds Payable issued
$ 2,09,000.00
Net cash flows from financing activities
$ 1,84,500.00
Net Increase in cash
$ 59,010.00
Cash balance jan 1
$ 28,355.00
Cash balance Dec 31
$ 87,365.00
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