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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, Dec.
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, Dec. 31, 2019 2018 Assets Cash Accounts receivable (net) $295,240 106,960 301,930 0 154,860 333,120 (77,990) $277,810 99,780 295,410 114,450 Inventories Investments Land Equipment Accumulated depreciation-equipment 261,180 (70,430) $978,200 Total assets $1,114,120 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $201,660 $192,710 Accrued expenses payable (operating expenses) 20,050 25,430 Dividends payable 11,140 8,800 Common stock, $10 par 60,160 47,930 Paid-in capital in excess of par-common stock 226,170 133,040 Retained earnings 594,940 570,290 Total liabilities and stockholders' equity $1,114,120 $978,200 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 $133,910 cash. d. The common stock was issued for cash. e. There was a $70,630 credit to Retained Earnings for net income. f. There was a $45,980 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
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