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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, 2019

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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, 2019 Dec. 31, 20Y8 Assets Cash $261,340 94,670 $243,100 87,310 Accounts receivable (net) Inventories 267,250 258,520 100,150 Investments 0 Land 137,080 0 294,870 Equipment Accumulated depreciation-equipment 228,550 (61,630) (69,030) $986,180 Total assets $856,000 $168,630 $178,500 17,750 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital in excess of par-common stock 9,860 53,250 200,190 22,260 7,700 41,940 Retained earnings 526,630 $986,180 116,420 499,050 $856,000 Total liabilities and stockholders' equity 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 $117,180 cash. d. The common stock was issued for cash. e. There was a $67,810 credit to Retained Earnings for net income. 1. There was a $40,230 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 outflow, 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: Net Income 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: ni bi bil 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, 2019

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