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Homework answers / question archive / The Murdock Corporation reported the following balance sheet data for 2006 and 2005

The Murdock Corporation reported the following balance sheet data for 2006 and 2005

Business

The Murdock Corporation reported the following balance sheet data for 2006 and 2005.

2006 2005
Cash $ 77,375 $ (22,955 )
Available-for-sale securities (not cash equivalents) 15,500 85,000
Accounts receivable 80,000 68,250
Inventory 165,000 145,000
Prepaid insurance 1,500 2,000
Land, buildings, and equipment 1,250,000 1,125,000
Accumulated depreciation (610,000 ) (572,000 )
Total assets $ 979,375 $ 830,295
Accounts payable $ 76,340 $ 102,760
Salaries payable 20,000 24,500
Notes payable 25,000 75,000
Bonds payable 200,000 0
Common stock 300,000 300,000
Retained earnings 358,035 328,035

Total liabilities and shareholders' equity $ 979,375 $ 830,295

Additional information for 2006:
(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 par value, $200,000.
(4.) Purchased new equipment for cash, $145,000.
(5.) Paid cash dividends of $20,000.
(6.) Net income for the year was $50,000.

Calculate
(a) Cash flows from operating activities
(b) Cash flows from investing activities
(c) Cash flows from financing activities for 2006.
Do not present the whole statement.

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