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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Dec. 31, 2049

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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Dec. 31, 2049 Dec. 31, 2048 Assets Cash $222,630 $209,490 Accounts receivable (net) 80,650 75,240 Inventories 227,680 222,760 Investments 0 86,300 Land 116,780 0 251,200 Equipment Accumulated depreciation-equipment 196,950 (53,110) (58,810) Total assets $840,130 $737,630 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $152,060 $145,310 Accrued expenses payable (operating expenses) 15,120 19,180 Dividends payable 8,400 6,640 Common stock, $10 par 45,370 36,140 Paid-in capital in excess of par-common stock 170,550 100,320 Retained earnings 448,630 430,040 Total liabilities and stockholders' equity $840,130 $737,630 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 $100,970 cash. d. The common stock was issued for cash e. There was a $53,260 credit to Retained Earnings for net income. f. There was a $34,670 debit to Retained Earnings for cash dividends dedared. 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 Loss on sale of investments Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: L mi I O 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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