The comparative balance sheet of Merrick Equipment Co. for December 31, 2016 and 2015, is as follows:

Question:

The comparative balance sheet of Merrick Equipment Co. for December 31, 2016 and 2015, is as follows:

The comparative balance sheet of Merrick Equipment Co. for December

Liabilities and Stockholders' Equity

The comparative balance sheet of Merrick Equipment Co. for December

Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $91,800 cash.
d. The common stock was issued for cash.
e. There was a $141,680 credit to Retained Earnings for net income.
f. There was a $102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Corporate Financial Accounting

ISBN: 978-1285868783

13th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

Question Posted: