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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2049 and 20Y8, is as follows: Dec. 31, Dec.
Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2049 and 20Y8, is as follows: Dec. 31, Dec. 31, 2019 2018 Assets Cash Accounts receivable (net) Inventories Investments $265,960 $246,260 96,350 88,450 271,980 261,880 0 101,450 139,5000 300,080 231,520 (70,250) (62,430) $1,003,620 $867,130 Land Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $181,660 $170,820 Accrued expenses payable (operating 18,070 22,550 expenses) Dividends payable 10,040 7,800 Common stock, $10 par 54,200 42,490 Paid-in capital in excess of par-common 203,730 117,930 stock Retained earnings 535,920 505,540 Total liabilities and stockholders' equity $1,003,620 $867,130 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 $118,700 cash. d. The common stock was issued for cash. e. There was a $71.140 credit to Retained Earnings for net income f. There was a $40,760 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from 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, 2049 Cash flows from (used for) 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: 00 0000 000 00 Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash balance, January 1, 2019 Cash balance, December 31, 2049
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