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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 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, 20Y9 and 20Y8, is as follows: Dec. 31, Dec. 31, 20Y9 20Y8 Assets Cash $228,700 $214,460 Accounts receivable (net) 82,850 77,020 Inventories 233,860 228,050 Investments 0 88,350 Land 119,960 0 201,620 Equipment 258,040 Accumulated depreciation-equipment (54,370) (60,410) $863,000 $755,130 Total assets Liabilities and Stockholders' Equity Accounts payable $156,200 $148,760 Accrued expenses payable 15,530 19,630 Dividends payable 8,630 6,800 Common stock, $10 par 46,600 37,000 Paid-in capital: Excess of issue price over par-common stock 175,190 102,700 46,600 37,000 Common stock, $10 par Paid-in capital: Excess of issue price over par-common stock 175,190 102,700 Retained earnings 460,850 440,240 Total liabilities and stockholders' equity $863,000 $755,130 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 $79,520 cash d. The common stock was issued for cash e. There was a $56,100 credit to Retained Earnings for net income. f. There was a $35,490 debit to Retained Earnings for cash dividends declared Required: Prepare 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, 20Y9 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 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 from financing activities Cash at the beginning of the year Cash at the end of the year
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