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 $$288,980$ $$268,820$

Accounts receivable $($net$)104,69096,550$

Inventories $295,510285,850$

Investments $0110,750$

Land $151,5800$

Equipment $326,060252,730$

Accumulated depreciation$$equipment $(76,330)(68,150)$

Total assets $$1,090,490$ $$946,550$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $$197,380$ $$186,470$

Accrued expenses payable $($operating expenses$)19,63024,610$

Dividends payable $10,9008,520$

Common stock, $$10$ par $58,89046,380$

Paid$-$in capital in excess of par$$common stock $221,370128,730$

Retained earnings $582,320551,840$

Total liabilities and stockholders' equity $$1,090,490$ $$946,550$

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 $$129,580$ cash.

The common stock was issued for cash.

There was a $$74,970$ credit to Retained Earnings for net income.

There was a $$44,490$ 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

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

Depreciation

Loss on sale of investments

Changes in current operating assets and liabilities: blank

Increase in accounts receivable

Increase in inventories

Increase in accounts payable

Decrease in accrued expenses payable

blank $Net cash flows from operating activities

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

$Cash received from sale of investments

Cash paid for purchase of land

Cash paid for purchase of equipment

blank Net cash flows used for investing activities

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

$Cash received from sale of common stock

Cash paid for dividends

blank Net cash flows from financing activities

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$9$