oter Review Problems: Series B PR 16-1B Statement of cash flows-indirect method Obj. 2- Prepare a statement of cash flows, using the indirect method. The comparative balance sheet of Merrick Equipment Co. for sUL December 31, 20Y9 and 20Y8, is as follows: Excel Show Me How Dec. 31, 20Y8 Dec. 31, 20Y9 Assets $ 47,940 70,720 Cash 188,190 207,230 Accounts receivable (net) 289,850 298,520 Inventories 102.000 Investments 295.800 Land 358,020 438.600 Equipment. (84,320) (99,110) Accumulated depreciation-equipment $901,680 $1,211,760 Total assets Liabilities and Stockholders' Equity $194,140 Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable.. Common stock, $1 par. Paid-in capital: Excess of issue price over par-common stock. Retained earnings... Total liabilities and stockholders' equity.. 205,700 26,860 30,600 20,400 25,500 202.000 102.000 204,000 354,000 354,280 393,960 $1,211,760 $901,680 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land were acquired for cash. a. 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. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. PR 16-1B Statement of cash flows-indirect method Obj. 2- Prepare a statement of cash flows, using the indirect method