Instructions Prepare a statement of cash flows, using the direct method of pics operating activities. in flows, using the direct method of presenting cash flows from Appendix 2 PR 13-5B Statement of cash flows-direct method applied to PR 13-10 The comparative balance sheet of Merrick Taninment Co. for Dec. 31, 20Y9 and 20Y8, 15 Net cash flow from operating activities, $154,260 Dec. 31, 2049 Dec 31, 2018 $ $ 70,720 207,230 298,520 EXCEL TEMPLATE 47,940 188,190 289,850 102,000 295,800 438,600 (99,110) $1,211,760 358,020 (84,320) $ 901,680 Assets Cash .......... Accounts receivable (net)......... Inventories ...................... Investments ................................. Land.............. . . Equipment................... Accumulated depreciation equipment ........... .... Total assets ........... . Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) .................. Accrued expenses payable (operating expenses) ..... Dividends payable....... Common stock, 51 par..... Paid-in capital: Excess of issue price over par--common stock.... Retained earnings...... Total liabilities and stockholders'equity.......... $ 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 (Continued) Chapter 13 Statement of Cash Flows The income statement for Sales ......... Cost of goods sold.......... Gross profit.......... me statement for the year ended December 31, 209, is as follows Operating expenses: Depreciation expense... Other operating expenses ...... Total operating expenses. Operating income... Other expenses: STAR $ 14,790 517299 Loss on sale of investments ..... Income before income tax .......... Income tax expense .... Net Income $ 246.333 10.2001 $ 235,133 94A53 Additional data obtained from an examination of the accounts in the ledger for 2049 are $ 141.680 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 $102,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Score: 78% Rey Myodele actions ans are entered in the one with with non gray backgrounds are protected and cannot be edited. sterisk () will appear to the right of an incorrect entry. MERRICK EQUIPMENT CO. Statement of Cash Flows For the Year Ended December 31, 2019 54 260 Cash flows from operating activities: Cash received from customers Cash payments for merchandise Cash payments for operatna expenses Cash payments for income taxe Nel cash flow from operating activities Cash flows from investing activities Cash received from sale of investments Cask paid for purchase and Cash or purcha Net cash flow used for investing activities Cash flows from financing activities Cash received from sale of common stock Cashpad Notes Net cash flow from financing activities Change in cash Cash at the beginning of the year Cash at the end of the year 20 god 5360 Se Yao 102N 114.680 14. 011 200 Schedule Reconciling Net Income with Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flow from operating activities Depreciation expense Loss on sale of investments Changes in current operating assets and abilities Ancas won coma T TH Andres Ane Waccounts payable Inca o naceu esposas paveld Net cash flow from operating activities Pt. 13-1B Pr. 13-5B + M a 0400) 11.070) 1111111 MS VAN 51111542 Increase inventories || Increase in accounts payable Increase in accruad expenses payable Net cash flow from operating activities Computations: Sales Increase in accounts receivable Cash received from customers (19,040) Cost of goods sold Increase in inventories Increase in accounts payable Cash payments for merchandise 8,670 (11 560) Operating expenses other than depreciation Increase in accrued expenses payable Cash payments for operating expenses (3.740) 70
