Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

INC Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31,

image text in transcribed
image text in transcribed
image text in transcribed
INC Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31, 2049 Dec. 31, 2018 Cash Accounts receivable (net) $296,760 107,510 303,470 Inventories Investments $273,830 98,350 291,180 112,810 0 257,440 (69,420) $964,190 Land Equipment 155,660 334,840 (78,390) $1,119,850 Accumulated depreciation-equipment SON Total assets Total assets Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par common stock Retained earnings Total liabilities and stockholders' equity $202,690 20,160 11,200 60,470 227,330 598,000 $1,119,850 $189,950 2 5,070 8,680 47,250 131,130 562,110 $964,190 Additional data obtained from an examination of the accounts in the ledger for 2049 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 $101,530 cash. d. The common stock was issued for cash. e. There was a $81,210 credit to Retained Earnings for net income. f. There was a $45,320 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. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. IND Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2049 Cash flows from operating activities: Cash used for dividends 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 (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Technical Audit A Thoroughfare Of System Perfection MBTA Management By Technical Audit

Authors: Shankar Bakhsh Srivastava

1st Edition

3848483343, 978-3848483341

More Books

Students also viewed these Accounting questions