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? newconnect.mheducation.com Connect Midterm exam 8-10PM Saved The Murdock Corpo

ID: 2413730 • Letter: #

Question

? 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 Next

Explanation / 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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