Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2088, is as follows: Dec. 31, 2049 Dec. 31, 20Y8 Assets Cash $260,820 $240,380 Accounts receivable (net) 94,480 86,330 Inventories 266,710 255,630 Investments 0 99,030 Land 136,810 0 Equipment 294,280 225,990 (60,940) Accumulated depreciation equipment (68,890) Total assets $984,210 $846,420 Liabilities and Stockholders' Equity $178,140 $ 166,740 Accounts payable Accrued expenses payable Dividends payable 17,720 22,010 9,840 7,620 Common stock, $10 par 53,150 41,470 Paid-in capital: Excess of issue price over par-common stock 199,790 115,110 Retained earnings 525,570 493,470 Total liabilities and stockholders' equity $984,210 $846,420 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 $89,130 cash. d. The common stock was issued for cash. e There was a 671 880 credit to Retained Earninns for net income Check My Work Next Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from used for) investing activities: o Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year Check My Work Next Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2017, is as follows: Dec. 31, 2018 Dec. 31, 2017 Assets Cash $69,780 $85,420 Accounts receivable (net) 107,220 115,150 Merchandise inventory 153,160 142,720 Prepaid expenses 6,240 4,330 312,010 255,720 Equipment Accumulated depreciation-equipment (81,120) (62,710) Total assets $567,290 $540,630 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $119,130 $112,990 Mortgage note payable 0 162,190 18,000 11,000 271,000 152,000 Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity 159,160 102,450 $567,290 $540,630 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $145,180. b. Depreciation reported on the income statement, $39,630. c. Equipment was purchased at a cost of $77,510, and fully depreciated equipment costing $21,220 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 7,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $88,470. Required: Required: Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 2048 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year Check My Work