Statement of Cash Flows-Direct Method applied to PR 13-18 The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2049 and 2088, is: Dec. 31, 2019 Dec. 31, 2048 Assets $47,940 Cash Accounts receivable (net) Inventories $70,720 207,230 298,520 188,190 289,850 102,000 Investments 358,020 (84,320) 5901,680 $194,140 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 payable (operating expenses) 30,600 Dividends payable 25,500 Common stock, 51 par 202.000 354,000 Pald-in capital: Excess of issue price over par-common stock Retained earnings 393.960 Total liabilities and stockholders' equity 51.211,760 26,860 20,400 102,000 204,000 354 280 $901.690 The income statement for the year ended December 31, 2099, is as follows: Sales $2,023,898 Cost of goods sold 1,245,476 Gross profit $778,422 Operating expenses: Depreciation expense $14,790 Other operating expenses 517,299 Total operating expenses 532,089 Operating income $246,333 Other expenses: Loss 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 ledger for 2049 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 $91,800 cash. d. The common stock was issued for cash. e. There was a $102,000 debit to Retained Earnings for cash dividends declared. the flowers from operating activities. Use the mi sion to indicate cash out for cash payments, decres Prepare a statement of cash flows, using the direct method of presenting cash, or any negative adjustments. Merrick Eigento Statement of Cash Flows For the Yew Ended December 11, 2049 Cash flows from operating activities ni mo Net cash flow from operating activities Cash flows from investing activities Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at beginning of the year Cash at end of the year