Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Dec. 31, 2019 Dec. 31, 2048 Assets Cash $259,830 $244,490 94,130 87,810 Accounts receivable (net) Inventories 265,720 259,990 Investments 0 100,720 136,290 0 Land Equipment Accumulated depreciation--equipment Total assets 293,170 (68,640) 229,850 (61,980) $980,500 $860,880 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $177,470 $169,590 Accrued expenses payable (operating expenses) 17,650 22,380 Dividends payable 9,810 7,750 Common stock, $10 par 52,950 42,180 Paid-in capital in excess of par-common stock 199,040 117,080 Retained earnings 523,580 501,900 Total liabilities and stockholders' equity $980,500 $860,880 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. a. Equipment and land were acquired for cash b. There were no disposals of equipment during the year. c. The Investments were sold for $117,840 cash d. The common stock was issued for cash. e. There was a $62,140 credit to retained Earnings for net Income 1. There was a $40.460 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, 2019 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 v Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) Investing activities Cash received from sale of investments DIJI O 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 DO DO DO 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, 2049 Cash balance, December 31, 2049