... ..... ... OBJ. 2 PR 16-1B Statement of cash flows-Indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 2014 and 2013, is as follows: Dec 31, 2014 Dec 31, 2013 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) $1,211,760 $901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors)... $ 205,700 $194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends payable..... 25,500 20,400 Common stock, $1 par... 202,000 102,000 Paid-in capital: Excess of issue price over par-common stock.. 354,000 204,000 Retained earnings....... 393,960 354,280 $1,211,760 $901,680 * .... Additional data obtained from an examination of the accounts in the ledger for 2014 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