Statement of Cash Flows Direct Method Applied to PR 16-18 The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2049 and 2048, is as follows: Dec. 31, 2019 Dec. 31, 2048 Assets Cash $70,720 $47,940 207,230 188,190 298,520 289,850 0 Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment 102,000 295,800 0 438,600 358,020 (84,320) (99,110) Total assets $1,211,760 $901,680 Liabilities and Stockholders' Equity $205,700 $194,140 Accounts payable Accrued expenses payable Dividends payable 30,600 26,860 25,500 20,400 102,000 202,000 Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained eamings 354,000 204,000 393,960 354,280 Total liabilities and stockholders' equity $1,211.760 $901,680 The income statement for the year ended December 31, 2099, is as follows: Sales $2,023,898 Cost of merchandise sold 1,245,476 Gross profit $778,422 Operating expenses: Depreciation expense $14,790 other operating expenses 517,299 Total operating expenses 532,089 Operating income $246,333 Other expenses: Loss on sale of investments (10,200) Income before income tax $236,133 Income tax expense 94,453 Net income $141,680 Additional data obtained from an examination of the accounts in the ledger for 20y9 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 $102,000 debit to Retained Earnings for cash dividends declared, Required: Prepare a statement of cash flows, using the direct 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 cash flow from operating activities Cash flows from (used for investing activities: 0 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