Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Cash Accounts receivable (net) Inventories Investments Land Equipment Assets Accumulated depreciation-equipment Total assets Dec. 31, 20Y9 Dec. 31, 20Y8 $283,040 $262,690 102,540 94,350 289,460 279,340 0 108,220 148,460 0 319,360 246,970 (74,770) (66,600) $1,068,090 $924,970 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $193,320 $182,220 Accrued expenses payable (operating expenses) 19,230 24,050 Dividends payable 10,680 8,320 Common stock, $10 par 57,680 45,320 Paid-in capital in excess of par-common stock 216,820 125,800 Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity 216,820 125,800 570,360 539,260 $1,068,090 $924,970 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 $126,620 cash. d. The common stock was issued for cash. e. There was a $74,570 credit to Retained Earnings for net income. f. There was a $43,470 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. 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 (used for) operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Net increase in cash Cash balance, January 1, 20Y9 Cash balance, December 31, 20Y9 $