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The Murdock Corporation
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flows from Operating Activities:
Net Income		$ 50,000
Adjustments to reconcile Net Income to
Net Cash provided by operations
Depreciation Expense	$ 53,000
Gain on Sale of Debt securities	$ (4,500)
Gain on Sale of Equipment	$ 1,000
Increase in Accounts Receivables	$ (11,750)
increase in Inventory	$ (20,000)
Decrease in Prepaid Insurance	$ 500
Decrease in Accounts Payable	$ (72,330)
Decrease in Salaries Payable	$ (4,500)
Decrease in Notes Payable (Current)	$ (50,000)	$ (110,580)
Net Cash Used by Operating Activities		$ (60,580)
Cash Flows from Investing Activities
Sale of Equipment	$ 6,000
Purchase of New Equipment	$ (145,000)
Sale of Debt Securities	$ 74,000
Net Cash used by investing activities		$ (65,000)
Cash Flows from Financing Activities
Issue of Bonds Payable	$ 200,000
Payment of Dividends	$ (20,000)
Net Cash Provided by Financing Activities		$ 180,000
Net Increase in Cash		$ 54,420
Cash Balance at Beginning of Year		$ 22,955
Cash Balance at End of Year		$ 77,375

As the statement of cash flow for 2018 in a good form using the indirect method for cash flows from operating activities have been made, create a cash flow worksheet to show that this is correct.

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