Statement of Cash Flows-Direct Method applied to PR 13-18 The comparative balance sheet of Merck Equipment Co. for Dec 31, 2019 and 2048, 5: Dec 31, 2019 Dec 31, 2018 Assets $47,940 188,190 289,850 102,000 0 358,020 (84,320) $901,680 Cash $70,720 Accounts receivable (net) 207,230 Inventories 298,520 Investments 0 Land 295,800 Equipment 438,600 Accumulated depreciation equipment (99,110) Total assets $1,211,760 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $205,700 Accrued expenses paypble (operating expenses) 30,600 Dividends payable 25,500 Common stock, $1 par 202,000 Paid-in capital in excess of par common stock 354,000 Retained earnings 393,960 Total liabilities and stockholders' equity $1,211,760 $194,140 26,860 20,400 102,000 204,000 354,280 $901,680 The income tentent for the year ended December 31, 2010, as follows Sale 52,023,90 Cost of goods sold (1,245.670) Cross profit 57.432 Operating expenses Depreciation expense $14,290 Other operating expenses 517,200 Total operating expens (532,089) Operating income 5246,13 Other expenses Low on sale of investments (10,200) Income before income tax $236,133 Income tax expense (94,453) Net income $141 680 Additional data obtained from an examination of the accounts in the lodger for 200 are as follows: a. Equipment and land were acquired for cash b. There were no disposals of equipment during the year The investments were sold for $91,800 cash d. The common stock was issued for cash c. There was a $102,000 debt to Retained Earnings for cash dividends declared Required: Prepare a statement of cash flows, asing the direct method of presenting canh flows from operating activities. Use the minus sign to indicate cash outfiones, cash payments, decreases in cash or any negative adjustments Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from (used for) operating activities: Cash received from customers 141,680 x Loss on sale of investments X 14,790 X Increase in accounts payable X Net cash flow from operating activities Cash flows from (used for) investing activities: 154,260 II Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash balance, January 1, 2049 Cash balance, December 31, 2019