Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31, 2019 Dec. 31, 2018 Assets Cash Accounts receivable (net) Inventories $304,650 110,360 311,540 $285,030 102,370 303,090 117,420 0 Investments 0 159,800 Land Equipment Accumulated depreciation-equipment Total assets 343,740 (80,470) $1,149,620 267,970 (72,260) $1,003,620 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $208,080 $197.710 Accrued expenses payable (operating expenses) 20,690 26,090 Dividends payable 11,500 9,030 Common stock, $10 par 62.080 49,180 Paid-in capital in excess of par--common stock 233,370 136,490 Retained earnings 613,900 585,120 Total liabilities and stockholders' equity $1,149,620 $1,003,620 Additional data obtained from an examination of the accounts in the ledger for 2049 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 $137,380 cash. d. The common stock was issued for cash e. There was a $75,950 credit to Retained Earnings for net income. f. There was a $47,170 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 outfiows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2049 Cash flows from (used for) operating activities: 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 Decrease in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash balance, January 1, 2049 Cash balance, December 31, 2049