Problem:
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.