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, Dec. 31, 2048 2049 Assets Cash $258,150 $240,420 Accounts receivable (net) 93,520 86,350 Inventories 264,000 255,650 Investments 0 99,050 Land 135,410 0 Equipment 291,270 226,030 Accumulated depreciation-equipment (68,190) (60,950) Total assets $974,160 $846,550 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $176,320 $166,770 17,530 22,010 Accrued expenses payable (operating expenses) Dividends payable 9,740 7,620 Common stock, $10 par 52,600 41,480 Paid-in capital in excess of par-common stock 197,750 115,130 Changes in current operating assets and liabilities: Increase in accounts receivable -6,630 X Increase in inventories -5,940 X Increase in accounts payable 7,960 Decrease in accrued expenses payable x -4,640 X Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments $ Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock $ Cash paid for dividends Net cash flow from financing activities Net increase in cash $ Cash balance, January 1, 2019 Cash balance, December 31, 2019 Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2049 Cash flows from (used for) operating activities: Net income $ 66,470 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 6,630 X Gain on sale of investments x 9,920 Changes in current operating assets and liabilities: Increase in accounts receivable -6,630 x Increase in inventorie dropdown -5,940 Increase in accounts payable 7,960 Decrease in accrued expenses payable x -4,640 Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments $ Cash paid for purchase of land Cash paid for purchase of equipment X Net cash flow used for investing activities x Cash flows from (used for financing activities: Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) $176,320 $166,770 17,530 22,010 Dividends payable 9,740 7,620 Common stock, $10 par 52,600 41,480 Paid-in capital in excess of par-common stock 197,750 115,130 493,540 Retained earnings 520,220 Total liabilities and stockholders' equity $974,160 $846,550 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 $115,890 cash. d. The common stock was issued for cash. e. There was a $66,470 credit to Retained Earnings for net income. f. There was a $39,790 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