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 $$291,420$ $$273,270$

Accounts receivable $($net$)105,57098,150$

Inventories $298,010290,590$

Investments $0112,580$

Land $152,8600$

Equipment $328,810256,920$

Accumulated depreciation$$equipment $(76,980)(69,280)$

Total assets $$1,099,690$ $$962,230$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $$199,040$ $$189,560$

Accrued expenses payable $($operating expenses$)19,79025,020$

Dividends payable $11,0008,660$

Common stock, $$10$ par $59,38047,150$

Paid$-$in capital in excess of par$$common stock $223,240130,860$

Retained earnings $587,240560,980$

Total liabilities and stockholders' equity $$1,099,690$ $$962,230$

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 $$131,720$ cash.

The common stock was issued for cash.

There was a $$71,480$ credit to Retained Earnings for net income.

There was a $$45,220$ 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

Net income

$Net income

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

Depreciation

Depreciation

Loss on sale of investments

Loss on sale of investments

Changes in current operating assets and liabilities: blank

Decrease in accounts receivable

Decrease in accounts receivable

Increase in inventories

Increase in inventories

Increase in accounts payable

Increase in accounts payable

Increase in accrued expenses payable

Increase in accrued expenses payable

Net cash flows used for operating activities

blank $Net cash flows used for operating activities

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

Cash received from gain on sale of investments

$Cash received from gain on sale of investments

Cash paid for purchase of land

Cash paid for purchase of land

Cash paid for purchase of equipment

Cash paid for purchase of equipment

Net cash flows from investing activities

blank Net cash flows from investing activities

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

Cash received from sale of common stock

$Cash received from sale of common stock

Cash paid for dividends

Cash paid for dividends

Net cash flows from financing activities

blank Net cash flows from financing activities

Net decrease in cash

blank $Net decrease in cash

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$9$nequired

Merrick tewipment Ce$.$

Statement ef Cash plews

Fer the Year teded Pecember $31,$ aqxe

Lies Rem Descriptien

Ameont Amevest

$5$