Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I've gotten most of this question. I just don't understand how to calculate these two specific cash flows. Thank you! Statement of Cash Flows-Indirect Method

I've gotten most of this question. I just don't understand how to calculate these two specific cash flows. Thank you! image text in transcribedimage text in transcribed

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, 20Y8 Assets Cash $275,550 $256,620 Accounts receivable (net) 99,820 92,170 Inventories 281,790 272,880 Investments 0 105,720 Land 144,530 0 Equipment 310,900 241,260 Accumulated depreciation-equipment (72,790) (65,060) Total assets $1,039,800 $903,590 Liabilities and Stockholders' Equity Accounts payable $188,200 $178,010 Accrued expenses payable 18,720 23,490 Dividends payable 10,400 8,130 Common stock, $10 par 56,150 44,280 Paid-in capital: Excess of issue price over par-common stock 211,080 122,890 Retained earnings 555,250 526,790 Total liabilities and stockholders' equity $1,039,800 $903,590 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 $95,150 cash. d. The common stock was issued for cash. e. There was a $70,930 credit to Retained Earnings for net income. f. There was a $42,470 debit to Retained Earnings for cash dividends declared. Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Net cash flow from financing activities

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_2

Step: 3

blur-text-image_3

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

Auditing The Modern Hospital

Authors: B. J Hall

1st Edition

0130516724, 978-0130516725

More Books

Students also viewed these Accounting questions