Statement of cash flows$$indirect method

The comparative balance sheet of Merrick Equipment Co$.$ for December $31,20$Y$9$ and $20$Y$8,$ is as follows:

Line Item Description December $31,20$Y$9$ December $31,20$Y$8$

Assets

Cash $$227,830$ $$211,450$

Accounts receivable $($net$)82,53075,940$

Inventories $232,990224,850$

Investments $087,110$

Land $119,5000$

Equipment $257,060198,790$

Accumulated depreciation$$equipment $(60,180)(53,610)$

Total assets $$859,730$ $$744,530$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $$155,610$ $$146,670$

Accrued expenses payable $($operating expenses$)15,48019,360$

Dividends payable $8,6006,700$

Common stock, $$10$ par $46,43036,480$

Paid$-$in capital in excess of par$$common stock $174,530101,260$

Retained earnings $459,080434,060$

Total liabilities and stockholders' equity $$859,730$ $$744,530$

Additional data obtained from an examination of the accounts in the ledger for $20$Y$9$ are as follows:

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $$101,920$ cash.

The common stock was issued for cash.

There was a $$60,010$ credit to Retained Earnings for net income.

There was a $$34,990$ 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 $31,20$Y$9$

Line Item Description Amount Amount

Cash flows from $($used for$)$ operating activities: blank

$$-$ Select $-$

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities: blank

$-$ Select $-$

$-$ Select $-$

Changes in current operating assets and liabilities: blank

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

blank $$-$ Select $-$

Cash flows from $($used for$)$ investing activities: blank

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

blank $-$ Select $-$

Cash flows from $($used for$)$ financing activities: blank

$$-$ Select $-$

$-$ Select $-$

blank $-$ Select $-$

blank $$-$ Select $-$

Cash balance, January $1,20$Y$9$ blank Cash balance, January $1,20$Y$9$

Cash balance, December $31,20$Y$9$ blank $Cash balance, December $31,20$Y$9$Statement of cash floma$-$indirect mothod

Deckmber Deckmber

$31,209$

$31,20rB$

a$.$ Equipmint and land wire acquirid for cask.

b$.$ Thure were no disporeats of equipethent during the yoar.

d$.$ The commen stack mate ivould for cash.

e$.$ Thare wak a $$60,010$ credit to foetained Eartinge for net inceme.

Requirte:

Merrich Equipment Ca$.$

Statement of Cash Flows

For the Year Ended Detember $31,20Y9$

Line Item Description

Amaunt Amount

Cask flumb from $($ukid for$)$ operating activition:

$|$

Caks flums frem $($usad for$)$ imvesting activitiks:

Cash flawh from $($uked for$)$ finarheing actrvitios:

Cash balanek, Janu$$ry $1,20\%9$

Cask batanes, Detinteer $31,20\%9$

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