Statement of Cash FlowsIndirect Method

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

		Dec. 31, 20Y9		Dec. 31, 20Y8
Assets
Cash		$256,620		$241,190
Accounts receivable (net)		92,960		86,620
Inventories		262,430		256,480
Investments		0		99,360
Land		134,600		0
Equipment		289,540		226,750
Accumulated depreciationequipment		(67,790)		(61,150)
	Total assets	$968,360		$849,250
Liabilities and Stockholders' Equity
Accounts payable		$175,270		$167,300
Accrued expenses payable		17,430		22,080
Dividends payable		9,680		7,640
Common stock, $10 par		52,290		41,610
Paid-in capital: Excess of issue price over par-common stock		196,580		115,500
Retained earnings		517,110		495,120
	Total liabilities and stockholders equity	$968,360		$849,250

Additional data obtained from an examination of the accounts in the ledger for 20Y9 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 $89,420 cash.
4. The common stock was issued for cash.
5. There was a $61,900 credit to Retained Earnings for net income.
6. There was a $39,910 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 out flows, 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:
Cash used for dividendsCash paid for landCash from sale of investmentsCash from sale of common stockLoss on sale of investmentsNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Accumulated depreciationCash paid for landCash used for dividendsCash from sale of common stockDepreciationRetained earningsDepreciation	Depreciation
Cash used for dividendsCash received from the sale of common stockCash received from net incomeGain on sale of investmentsLoss on sale of investmentsRetained earningsLoss on sale of investments	Loss on sale of investments
Changes in current operating assets and liabilities:
Decrease in accounts receivableDecrease in accounts payableDecrease in inventoriesDepreciationIncrease in accounts receivableLoss on sale of investmentsIncrease in accounts receivable	Increase in accounts receivable
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesGain on sale of investmentsIncrease in accrued expensesIncrease in inventoriesIncrease in inventories	Increase in inventories
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in accounts payableIncrease in accrued expensesLoss on sale of investmentsIncrease in accounts payable	Increase in accounts payable
Decrease in accounts payableDecrease in accrued expenses payableDecrease in dividends payableDepreciationIncrease in accrued expenses payableIncrease in landDecrease in accrued expenses payable	Decrease in accrued expenses payable
Net cash flow from operating activities		$fill in the blank 15
Cash flows from (used for) investing activities:
Cash received from gain on sale of investmentsCash received from loss on sale of investmentsCash received from net incomeCash from sale of common stockCash from sale of investmentsCash received from retained earningsCash from sale of investments	$Cash from sale of investments
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash used for dividendsCash used for purchase of landCash used for purchase of land	Cash used for purchase of land
Cash paid for accounts receivableCash paid for accrued expensesCash paid for accumulated depreciationCash paid for inventoriesCash used for purchase of equipmentCash paid for retained earningsCash used for purchase of equipment	Cash used for purchase of equipment
Net cash flow used for investing activities		fill in the blank 22
Cash flows from (used for) financing activities:
Cash received from net incomeCash from sale of common stockCash received from sale of equipmentCash received from sale of inventoriesCash from sale of investmentsCash received from retained earningsCash from sale of common stock	Cash from sale of common stock
Cash used for dividendsCash paid for inventoriesCash used for purchase of equipmentCash paid for purchase of investmentsCash used for purchase of landCash paid for retained earningsCash used for dividends	Cash used for dividends
Net cash flow from financing activities		fill in the blank 27
Decrease in cashIncrease in cashIncrease in cash		$Increase in cash
Cash at the beginning of the year		fill in the blank 30
Cash at the end of the year		$fill in the blank 31