Statement of Cash Flows The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2018, is as follows: Assets Dec. 31, 2019 Dec. 31, 2018 Cash Accounts receivable (net) $277,320 $260,050 100,460 93,400 Inventories 283,600 276,540 Investments 0 107,130 Landi 145,460 o Equipment 312.900 244,490 Accumulated depreciation-equipment (73,250) (65,930) Total assets $1,046,490 $915,680 4 Liabilities and Stockholders' Equity Accounts payable $189,410 $180,390 Accrued expenses payable 18,540 23,810 Dividends payable 10,460 8,240 Common stock, $10 par 56,510 44,870 Evrece of paid in canital mura 315 440 124.530 Previous Next Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity 212,440 124,530 558,830 533,840 $1,046,490 $915,680 Additional data obtained from an examination of the accounts in the ledger for 2019 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 $96,420 cash. d. The common stock was issued for cash. e. There was a $68,030 credit to Retained Earnings for net income. f. There was a $43,040 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: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Loss on sale of investments 000 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net cash flows from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments Cash paid for purchase of land < Cash paid for purchase of equipment Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash received from issuing common stock Cash dividends Net cash flows from financing activities Net increase in cash Cash balance, January 1, 2019 Et i 00 0000 0 000 0000 0 0 49F Mostly cloudy Previous Next B ENG 12/M