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		$314,850		$290,180
Accounts receivable (net)		114,060		104,220
Inventories		321,980		308,580
Investments		0		119,550
Land		165,150		0
Equipment		355,240		272,810
Accumulated depreciationequipment		(83,170)		(73,570)
Total assets		$1,188,110		$1,021,770
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$215,050		$201,290
Accrued expenses payable (operating expenses)		21,390		26,570
Dividends payable		11,880		9,200
Common stock, $10 par		64,160		50,070
Paid-in capital in excess of parcommon stock		241,190		138,960
Retained earnings		634,440		595,680
Total liabilities and stockholders equity		$1,188,110		$1,021,770

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 $139,870 cash.
4. The common stock was issued for cash.
5. There was a $86,780 credit to Retained Earnings for net income.
6. There was a $48,020 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:
net income
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation
loss on sale of investments
Changes in current operating assets and liabilities:
increase in accounts receivable
increase in inventories
increase in accounts payable
decrease in accrued expenses payable
Net cash flow from operating activities
Cash flows from (used for) investing activities:
cash from sale of investments
cash used for purchase of land
cash used for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
cash from sale common stock
cash used for dividends
Net cash flow from financing activities
increase in cash
Cash balance, January 1, 20Y9
Cash balance, December 31, 20Y9