Statement of cash flows-indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Assets December 31, 20Y9 December 31, 20Y8 Cash Accounts receivable (net) $259,600 $239,820 94,050 86,130 Inventories 265,480 255,030 Investments Land Equipment Accumulated depreciation-equipment Total assets 0 98,800 136,170 0 292,910 225,470 (68,570) (60,800) $979,640 $844,450 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $177,310 $166,360 Accrued expenses payable (operating expenses) 17,630 21,960 Dividends payable 9,800 7,600 Common stock, $10 par 52,900 41,380 Paid-in capital in excess of par-common stock 198,870 114,850 Retained earnings 523,130 492,300 Total liabilities and stockholders' equity $979,640 $844,450 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 $115,600 cash. d. The common stock was issued for cash. e. There was a $70,520 credit to Retained Earnings for net income. f. There was a $39,690 debit to Retained Earnings for cash dividends declared. 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 Amount Amount Line Item Description Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation X 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 sale of common stock 70,520 7,770 39,690 X -7,920 -10,450 10,950 -4,600 X $ 115,600 X -136,170 -67,440 105,960 X 17,350 X Net cash flows from financing activities Cash balance, January 1, 20Y9 Cash balance, December 31, 2019