Answer:
The Murdock Corporation
Statement of Cash Flows for the year ended December 31, 2021
Operating activities (only):
Net income                                $69,000
Depreciation expense                  51,100
Gain on sale of securities            (6,400)
Gain on sale of equipment          (1,950)
Changes in working capital:
Accounts receivable                 (13,650)
Inventory                                   (21,900)
Prepaid insurance                          690
Accounts payable                    (74,230)
Salaries payable                        (6,400)
Notes payable (current)          (51,900)
Cash flow from operations ($55,640)
Explanation:
a) Data and Calculations:
                                                      2021           2020        Change
Cash                                         $98,465       $34,355      +$64,110
Available-for-sale debt securities
  (not cash  equivalents)             25,000       104,000       -79,000
Accounts receivable                 99,000         85,350       +13,650
Inventory                                  184,000        162,100       +21,900
Prepaid insurance                       3,210           3,900            -690
Land, buildings, and
  equipment                         1,288,000     1,144,000     +144,000
Accumulated depreciation  (629,000 )   (591,000 )     +38,000
Total assets                       $1,068,675   $942,705
Accounts payable                  $93,440    $167,670       -74,230
Salaries payable                      27,600        34,000        -6,400
Notes payable (current)           42,100       94,000       -51,900
Bonds payable                       219,000       0              +219,000
Common stock                     300,000     300,000     0
Retained earnings                386,535     347,035      +39,500
Total liabilities and
shareholders' equity       $1,068,675   $942,705
Additional information for 2021:
1. Available=for-sale debt securities:
Cost = $79,000
Sales =  85,400 Cash
Profit =  $6,400
2. Equipment:
Cost =     $20,000
Acc. Dep.    13,100
Book value 6,900
Cash sales 8,850 
Profit =        1,950
Accumulated Depreciation:
Beginning balance   $591,000
Sale of equipment       (13,100)
Depreciation expense 51,100
Ending balance        629,000
3. Bonds issue = $219,000
Interest on bonds = 13,140 ($219,000 * 6%)
4. Purchase of new equipment = $164,000
5. Cash dividends = $29,500
6. Net income = $69,000
Statement of Cash Flows for the year ended December 31, 2021
Operating activities:
Net income                                $69,000
Depreciation expense                  51,100
Gain on sale of securities            (6,400)
Gain on sale of equipment          (1,950)
Changes in working capital:
Accounts receivable                 (13,650)
Inventory                                   (21,900)
Prepaid insurance                          690
Accounts payable                    (74,230)
Salaries payable                        (6,400)
Notes payable (current)          (51,900)
Cash flow from operations ($55,640)
Investing activities:
Sale of equipment                    8,850
Purchase of equipment      (164,000)
Available-for-sale debt securities
  (not cash  equivalents)        85,400
Cash flow from investing ($69,750)
Financing activities:
Issue of bonds                    219,000
Dividends                            (29,500)
Cash from financing         $189,500
Net Cash flows                    $64,110
Reconciliation:
Beginning cash balance   $34,355
Net Cash flows                   $64,110
Ending cash balance        $98,465