statement of cash flows

Ch 16-3 Exercises and Problems Statement of Cash Flows-Indirect Method 0 U E ce sheet of Merrick Equipment Co. for ws ecember 31, 2049 and 20Y8, is as follows: Dec. 31, Dec. 31, 2019 2018 Accounts receivable (net) Inventories Investments $251,160 90,990 256,840 $233,100 83,720 247,870 96,030 131,740 0 V Equipment Accumulated 283,380 (66,340) $947,770 219,150 (59,100) $820,770 Total assets and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $10 par $171,550 17,060 9,480 51,180 $161,690 21,340 7,390 40,220 Ch 16-3 Exercises and Problems Paid-in capital: Excess of issue price over par-common Retained earnings 192,400 111,620 506,100 478,510 $947,770 $820,770 Y9 are as follows: Total liabilities and stockholders' equity Additional data obtained from an examination of the accounts a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. C. The investments were sold for $86,430 cash. d. The common stock was issued for cash. e. There was a $66,170 credit to Retained Earnings for net income. f. There was a $38,580 debit to Retained Earnings for cash dividends clared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows 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, 2049 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts recolvable Ch 16-3 Exercises and Problems Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Increase in accrued expenses payable x Net cash flow from operating activities Cash flows from (used for) investing activities: Cash from sale of investments Cash used for purchase of land pould 001 O D0000 Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Net cash flow from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year