Question
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
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 | $227,130 | $209,820 | |||
| Accounts receivable (net) | 82,280 | 75,360 | |||
| Inventories | 232,270 | 223,110 | |||
| Investments | 0 | 86,440 | |||
| Land | 119,130 | 0 | |||
| Equipment | 256,270 | 197,260 | |||
| Accumulated depreciationequipment | (60,000) | (53,190) | |||
| Total assets | $857,080 | $738,800 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable (merchandise creditors) | $155,130 | $145,540 | |||
| Accrued expenses payable (operating expenses) | 15,430 | 19,210 | |||
| Dividends payable | 8,570 | 6,650 | |||
| Common stock, $10 par | 46,280 | 36,200 | |||
| Paid-in capital in excess of parcommon stock | 173,990 | 100,480 | |||
| Retained earnings | 457,680 | 430,720 | |||
| Total liabilities and stockholders equity | $857,080 | $738,800 | |||
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
- Equipment and land were acquired for cash.
- There were no disposals of equipment during the year.
- The investments were sold for $101,130 cash.
- The common stock was issued for cash.
- There was a $61,680 credit to Retained Earnings for net income.
- There was a $34,720 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: | ||
| $fill in the blank 2 | ||
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| fill in the blank 4 | ||
| fill in the blank 6 | ||
| Changes in current operating assets and liabilities: | ||
| fill in the blank 8 | ||
| fill in the blank 10 | ||
| fill in the blank 12 | ||
| fill in the blank 14 | ||
| Net cash flow from operating activities | $fill in the blank 15 | |
| Cash flows from (used for) investing activities: | ||
| $fill in the blank 17 | ||
| fill in the blank 19 | ||
| fill in the blank 21 | ||
| Net cash flow used for investing activities | fill in the blank 22 | |
| Cash flows from (used for) financing activities: | ||
| $fill in the blank 24 | ||
| fill in the blank 26 | ||
| Net cash flow from financing activities | fill in the blank 27 | |
| $fill in the blank 29 | ||
| Cash balance, January 1, 20Y9 | fill in the blank 30 | |
| Cash balance, December 31, 20Y9 | $fill in the blank 31 | |
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
978-0134476315
