Statement of Cash Flows

PROVIDED IMAGE FOR CLARITY

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

		Dec. 31, 20Y9		Dec. 31, 20Y8
Assets
Cash		$287,940		$271,250
Accounts receivable (net)		104,310		97,420
Inventories		294,470		288,440
Investments		0		111,750
Land		151,030		0
Equipment		324,890		255,010
Accumulated depreciationequipment		(76,060)		(68,770)
Total assets		$1,086,580		$955,100
Liabilities and Stockholders' Equity
Accounts payable		$196,670		$188,150
Accrued expenses payable		19,560		24,830
Dividends payable		10,870		8,600
Common stock, $10 par		58,680		46,800
Excess of paid-in capital over par		220,580		129,890
Retained earnings		580,220		556,830
Total liabilities and stockholders' equity		$1,086,580		$955,100

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $100,580 cash.

The common stock was issued for cash.

There was a $68,280 credit to Retained Earnings for net income.

There was a $44,890 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, 20Y9

Cash flows from (used for) operating activities:
Cash dividends / Cash paid for land / Cash received from issuing common stock / Cash received from sale of investments / Net income	- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Cash dividends / Cash paid for land / Cash received from issuing common stock / Depreciation / Retained earnings	- Select -
Cash received from net income / Cash received from the sale of common stock / Gain on sale of investments / Loss on sale of investments / Retained earnings	- Select -
Changes in current operating assets and liabilities:
Decrease in accounts payable / Decrease in accounts receivable / Decrease in inventories / Increase in accounts receivable / Loss on sale of investments	- Select -
Decrease in accounts payable / Decrease in accounts receivable / Decrease in inventories / Gain on sale of investments / Increase in inventories	- Select -
Decrease in accounts payable / Decrease in accounts receivable / Decrease in accrued expenses / Decrease in inventories / Increase in accounts payable	- Select -
Decrease in accounts payable / Decrease in accrued expenses payable / Decrease in dividends payable / Depreciation / Increase in accrued expenses payable	- Select -
Net cash flows from operating activities		fill in the blank
Cash flows from (used for) investing activities:
Cash received from gain on sale of investments / Cash received from issuing common stock / Cash received from loss on sale of investments / Cash received from sale of investments / Cash received from retained earnings	- Select -
Cash paid for accounts payable / Cash paid for accumulated depreciation / Cash paid for common stock / Cash paid for depreciation / Cash paid for purchase of land	- Select -
Cash paid for accounts receivable / Cash paid for accrued expenses / Cash paid for accumulated depreciation / Cash paid for inventories / Cash paid for purchase of equipment	- Select -
Net cash flows used for investing activities		fill in the blank
Cash flows from (used for) financing activities:
Cash received from issuing common stock / Cash received from net income / Cash received from sale of equipment / Cash received from sale of inventories / Cash received from sale of investments	- Select -
Cash dividends / Cash paid for inventories / Cash paid for purchase of equipment / Cash paid for purchase of investments / Cash paid for purchase of land	- Select -
Net cash flows from financing activities		fill in the blank
Net decrease in cash / Net increase in cash		- Select -
Cash balance, January 1, 20Y9		fill in the blank
Cash balance, December 31, 20Y9		fill in the blank

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, 20Y9 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: Net cash flows from operating activities Cash flows from (used for) investing activities: Net cash flows used for investing activities Cash flows from (used for) financing activities: Net cash flows from financing activities Cash balance, January 1, 20Y9 Cash balance, December 31, 20Y9