Reporting tance and Retirement of Long-Term Debt On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or lows on retiring the ACCOUNT Bonde Payable ACCOUNT NO Item Debi Credit Date lan 1 2 30 Balance Retire bonds 88.000 440,000 352,000 616,000 e bonds 264,000 ACCOUNT Discount en Bend Payable Date Debi Credit Jan 1 ACCOUNT NO Balance Debit Credit 19.000 12,760 30,460 28,90 Them Balance Retire bonds De bonds Amortize discount 7.040 2 30 31 June Dec 17,700 1,520 Item Section of Statement Cash Flowe Added or Deducted Amount Retire bonds to bones II Amortation of discount 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, 2079 Dec. 31, 2018 Assets $295,290 Cash Accounts receivable (net) Inventories 106,050 Investments $315,620 114,340 322,750 0 165,550 356,110 (83,370) $1,191,000 Land 314,000 121,650 0 277,610 (74,860) $1,039,740 Equipment Accumulated depreciation-equipment Total assets $204,830 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $10 par $215,570 21,440 27,030 9,360 11,910 Paid-in capital: Excess of issue price over par-common stock 64,310 241,770 636,000 $1,191,000 50,950 141,400 606,170 Retained earnings Total liabilities and stockholders' equity $1,039,740 Additional data obtained from an examination of the accounts in the ledger for 2049 are as follows: Additional cata obtained from an examination of the accounts in the leger for 2019 are as follows: a. Equipment and land were scared for cash b. There were no disposals of equipment during the year. The investments were sold for $109.490 cash. d. The common stock was issued for cash. e. There was a $78,700 credit to Retained caring for net income L. There was a 48,870 to Retained tags for cash dividends declared. Required: Prepare a statement of cash Now, using the Indirect method of presenting cows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Adjustments to reconcilie net income to net cash now from operating activities: Changes in current operating assets and abilities: Net cash how from operang activities Cash flows from used for investing activities o Chapter 16 Homework eBook Show Me How Calculator Print 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: mi 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
