eBook B Show Me How Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2088, is as follows: Dec. 31, 2019 Dec 31, 2018 Assets Cash $ 70,720 $47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 0 102,000 Land 295,800 0 Equipment 438,600 358,020 Accumulated depreciation-equipment (99,110) (84,320) Total assets $1,211,760 $901,680 $194,140 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $1 par Pald-in capital: Excess of issue price over par-common stock $ 205,700 30,600 25,500 26,860 20,400 202,000 354,000 102,000 204,000 Retained earnings 393.960 354 280 $205,700 $194,140 30,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity 26,860 20,400 25,500 202,000 102,000 204,000 354,000 393,960 354,280 $1,211,760 $901,680 Additional data obtained from an examination of the accounts in the ledger for 20y9 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, Required: Prepare a statement of cash flows, using the Indirect method of presenting cash flows from operating activities. U to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Sraise Cash flows from operating activities: Loss on sale of investments x 10,200 X Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: H0 l Net cash flow used for investing activities Cash flows from financing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at beginning of the year Cash at end of the year