Chapter 14 Statement of Cash Flows 687 Series B PR 14-1B Statement of cash flows-indirect method OBJ. 2 The comparative balance sheet of Merrick Equipment Co. for December 31, 2016 and 2015, is as follows: Dec. 31, 2016 Dec. 31, 2015 Assets $ 70,720 207,230 298,520 0 295,800 438,600 $ 47.940 188,190 289,850 102,000 0 358,020 Land ...$1,211.760 $901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) . Accrued expenses payable (operating expenses) 205,700 30,600 25,500 202,000 354,000 393,960 $1,211,760 $194,140 26,860 20,400 102,000 204,000 354,280 $901,680 Paid-in capital: Excess of issue price over par-common stock. Total liabilities and stockholders' equity 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