Statement of Cash Flows-Indirect Method

The comparative balance sheet of Merrick Equipment Co. for December 31, 209 and 20Y8, is as follows:

Assets

Cash

Accounts receivable (net)

Inventories

Investments

Land

Equipment

Accumulated depreciation--equipment

Total assets

Dec. 31, 20Y9 Dec. 31, 20Y8

$70,720

207,230

298,520

0

295,800

$47,940

188,190

289,850

102,000

0

438,600

358,020

(99,110)

$1,211,760

(84,320)

$901,680

Liabilities and Stockholders' Equity

Accounts payable (merchandise creditors)

Accrued expenses payable (operating expenses)

Dividends payable

Common stock, $1 par

Paid-in capital in excess of par- common stock

Retained earnings

$205,700

30,600

25,500

202,000

354,000

393,960

$1,211,760

$194,140

26,860

20,400

102,000

204,000

354,280

$901,680

Total liabilities and stockholders' equity

Additional data obtained from an examination of the accounts in the ledger for 209 are as follows:

1. Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $91,800 cash.
4. The common stock was issued for cash.
5. There was a $141,680 credit to Retained Earnings for net income.
6. There was a $102,000 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 payments, decreases in cash, or any negative adjustments.