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 Liabilities and Stockholders' Equity Dec. 31, 20Y9 Dec. 31, 2018 $231,090 83,710 $214,720 77,120 236,320 228,320 0 88,460 121,210 0 260,740 201,870 (61,040) (54,440) $872,030 $756,050 Accounts payable (merchandise creditors) $157,840 $148,940 Accrued expenses payable (operating expenses) 15,700 19,660 Dividends payable 8,720 6,800 Common stock, $10 par 47,090 37,050 Paid-in capital in excess of par-common stock 177,020 102,820 Retained earnings 465,660 440,780 1 Retained earnings Total liabilities and stockholders' equity 465,660 440,780 $872,030 $756,050 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. The investments were sold for $103,500 cash. d. The common stock was issued for cash. e. There was a $60,410 credit to Retained Earnings for net income. f. There was a $35,530 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, 20Y9 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 Increase 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 141,680. 14,790 10,200 0 000 Net increase in cash Cash balance, January 1, 2019 Cash balance, December 31, 2019 1000