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, 2018 $269,970 $249,400 97,800 89,570 276,070 265,210 0 102,740 141,610 0 304,610 234,470 (71,310) (63,230) $1,018,750 $878,160 Liabilities and Stockholders' Equity Accounts payable $184,390 $173,000 Accrued expenses payable 18,340 22,830 Dividends payable 10,190 7,900 Common stock, $10 par 55,010 43,030 Paid-in capital: Excess of issue price over par-common stock 206,810) 119,430 Liabilities and Stockholders' Equity Accounts payable $184,390 $173,000 Accrued expenses payable 18,340 22,830 Dividends payable 10,190 7,900 Common stock, $10 par 55,010 43,030 Paid-in capital: Excess of issue price over par-common stock 206,810 119,430 Retained earnings 544,010 511,970 Total liabilities and stockholders' equity $1,018,750 $878,160 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. c. The investments were sold for $92,470 cash. d. The common stock was issued for cash. e. There was a $73,310 credit to Retained Earnings for net income. f. There was a $41,270 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. Ene the Voar Endad Doramhor 21 2 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, 2019 Cash flows from 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 Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) Investing activities: Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment 300 0000 00 0 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 from sale of investments Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock < Cash used for dividends Net cash flow from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year Q O 000 00 0000