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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2049 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, 2049 and 2048, is as follows: Dec. 31, Dec. 31, 2019 2048 Assets Cash $291,140 $268,960 105,470 96,600 297,730 286,000 Accounts receivable (net) Inventories Investments Land 0 110,800 152,710 0 Equipment 328,490 252,860 Accumulated depreciation equipment (76,900) (68,190) Total assets $1,098,640 $947,030 $198,850 $186,560 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable 19,780 24,620 10,990 8,520 Common stock, $10 par 59,330 46,400 Paid-in capital in excess of par-common stock 223,020 128,800 Total assets $1,098,040 $947,030 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $198,850 $186,560 Accrued expenses payable (operating expenses) 19,780 24,620 Dividends payable 10,990 8,520 Common stock, $10 par 59,330 46,400 Paid-in capital in excess of par-common stock 223,020 128,800 Retained earnings 586,670 552,130 Total liabilities and stockholders' equity $1,098,640 $947,030 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 $129,640 cash. d. The common stock was issued for cash. e. There was a $79,050 credit to Retained Earnings for net income. f. There was a $44,510 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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