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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2049 and 2088, 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 2088, is as follows: Dec. 31, 2019 Dec. 31, 2018 Assets Cash $305,000 110,490 Accounts receivable (net) Inventories $286,330 102,840 3041780 117,960 311,900 Investments 0 Land 159,980 0 Equipment 344,130 269,190 Accumulated depreciation-equipment (80,570) (72,590) K Total assets $1,150,930 $1,008,210 $208,320 $198,620 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable 20,720 26,210 11,510 9,070 Common stock, $10 par 62,150 49,400 Paid-in capital in excess of par-common stock 233,640 137, 120 Paid-in capital in excess of par--common stock 233,640 137,120 Retained earnings 614,590 587,790 Total liabilities and stockholders' equity $1,150,930 $1,008,210 Additional data obtained from an examination of the accounts in the ledger for 20y9 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 $138,010 cash. d. The common stock was issued for cash. e. There was a $74,190 credit to Retained Earnings for net income. f. There was a $47,390 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 indica outflows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows 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: Depreciation Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable . Increase in inventories increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: o 3 o Net cash flow used for investing activities Cash flows from (used for) financing activities: Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable 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 from financing activities Cash balance, January 1, 2019 Cash balance, December 31, 2019

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