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Statement of cash flows - indirect method The comparative balance sheet of Merrick Equipment Co . for December 3 1 , 2 0 Y 9
Statement of cash flowsindirect method
The comparative balance sheet of Merrick Equipment Co for December Y and Y is as follows:
Additional data obtained from an examination of the accounts in the ledger for Y 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 $ cash.
d The common stock was issued for cash.
e There was a $ credit to Retained Earnings for net income.
f There was a $ debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from used for 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
Line Item Description
Amount
Amount
Cash flows from used for operating activities:
$
Adjustments to reconcile net income to net cash flows from used for operating activities:
Changes in current operating assets and liabilities:
Cash flows from used for investing activities:
Cash flows from used for financing activities:
eBook
Show Me How
December December
Assets
Cash
Accounts receivable net
Inventories
Investments
Land
Equipment
Accumulated depreciationequipment
Total assets
table$$
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