Statement of Cash Flows The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31, Doc. JL 20Y 20YW Assets Cash $293,240 Accounts receivable (net) Inventories $311,540 112,900 318,690 105,320 311,820 120,810 Investments Land Equipment Accumulated depreciation equipment 263,470 351,630 (82,320) $1,176,010 275,690 (74,340) Total assets $1,032,540 $203,410 26,850 9,290 Liabilities and stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $10 par Excess of paid in capital over par Retained earnings Total liabilities and stockholders' equity 5212,860 21,170 11,760 63,500 238,730 627,990 51,176,010 50,590 140,430 601,970 51,032,540 Additional data obtained from an examination of the accounts in the ledger for 20y9 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 $108,730 cash Check my work more che My Worses remarca All work saved Show ME HOW 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. G. The Investments were sold for $108,730 cash. d. The common stock was issued for cash. e. There was a $74,550 credit to Retained Earnings for net Income. f. There was a $48,530 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. Us Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from (used for) operating activities: Net income 74,550 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation 7,980 Loss on sale of investments x Changes in current operating assets and liabilities: Increase in necounts receivable -7,580 Increase in inventories -6,870 Increase in accounts payable 9,450 Decrense in neerud exence payable -5,680 Net cash flows from operating activities Cash flows from (used for investing activities Canh coved from or invest 108,730 Calihi naid for purchase the -163,170 Cach paid for purchasi -75.900 10 Snow Me How 74,550 7,50 X -7,580 -6,870 9,450 5.680 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 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 flown used for investing activities Cash nows from used for) financing activities cash received from issuing common stock cash dividends Net cash flows from financing activities Net Increase in cash a
