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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, 20Y9
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, 20Y9 Dec. 31, 2018 Assets Cash $263,140 $247,600 Accounts receivable (net) 95,330 88,930 Inventories 269,100 263,290 Investments 0 102,010 Land 138,020 0 Equipment 296,900 232,780 Accumulated depreciation equipment (69,510) (62,770) Total assets $992,980 $871,840 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $179,730 $171,750 Accrued expenses payable (operating expenses) 17,870 22,670 Dividends payable 9,930 7,850 Common stock, $10 par 53,620 42,720 Paid-in capital in excess of par-common stock 201,570 118,570 Paid-in capital in excess of par-common stock 201,570 118,570 Retained earnings 530,260 508,280 Total liabilities and stockholders' equity $992,980 $871,840 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 $119,350 cash. d. The common stock was issued for cash. e. There was a $62,960 credit to Retained Earnings for net income. f. There was a $40,980 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. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: L m Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash balance, January 1, 2019 Cash balance, December 31, 2019
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