eBook Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Cash Accounts receivable (net) Inventories Investments Land Equipment Assets Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity Dec. 31, 20Y9 Dec. 31, 20Y8 3 $263,040 $247,790 95,290 89,000 269,010 263,500 0 102,080 137,970 0 296,790 232,960 (69,480) (62,820) $992,620 $872,510 $179,660 $171,880 17,870 22,690 9.930 7,850 53,600 42,750 201,500 118,660 530,060 508,680 $992.620 $872,510 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. h. There were no dienneple of amuinment during the year Check My Work eBook Show Me How Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings. Total liabilities and stockholders' equity 53,600 42,750 201,500 118,660 530,060 508,680 $992,620 $872,510 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 $119,430 cash. d. The common stock was issued for cash. e. There was a $62,390 credit to Retained Earnings for net income. f. There was a $41,010 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operati negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from (used for) operating activities: Net income 62.390 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 6.660 Gain on sale of investments A -17,350 Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories -6.290 7,780 X Increase in accounts payable 4,820 X Decrease in accrued expenses payable Check My Work eBook Show Me How Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from (used for) operating activities: Net income 62,390 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 6,660 Gain on sale of investments -17,350 Changes in current operating assets and liabilities: Increase in accounts receivable -6,290 Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Net increase in cash. Cash balance. January 1, 20Y9 Check My Work 7,780 X 4,820 X 1000000 eBook Show Me How Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Net increase in cash Cash balance, January 1, 2019 Cash balance, December 31, 20Y9 6,660 -17,350 -6,290 7,780 X 4,820 X 1000 000 0 0 0000 Feedback Check My Work Compne the increases and decreases in the current assetsbility accounts over the herind How in these increases or decre Check My Work