Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2088, is as follows: Dec. 31, Dec. 31, 2019 2018 Assets Cash $314,990 Accounts receivable (net) Inventories Investments 114,110 322,110 $ 292,670 105,120 311,230 120,570 0 Land 165,220 0 Equipment Accumulated depreciation-equipment 275,150 355,400 (83,200) (74,200) Total assets $1,188,630 $1,030,540 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Pald-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $215,140 21,400 11,890 64,190 241,290 634,720 $1,188,630 $203,020 26,790 9,270 50,500 140,150 600,810 $1,030,540 Total and stockholders' equy $1,150,630 $1,030,540 Additional data obtained from an examination of the accounts in the ledger for 2015 are as follows: tament ant and were acquired for ca. There were nodig of imanting the The Investments were so for $141,070 cash a. The common stoo was issued for cash There was a $12.50 cred to ined Gaming for netcome There was 48.440 debt to Hetained Earnings for cash dividents declared Merrick Equipment Ce Cash flows from (used for) operating activities: Net income 82,350 9,000 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments x Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories 20.500 X 8,990 X 10,880 X Increase in accounts payable 12,120 Decrease in accrued expenses payable 53,390 X 57,710 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 141,070 165,220 X Cash paid for purchase of equipment 80,250 X 104,400 X Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock 114,830 Cash paid for dividends 45,820 X 69,010 Net cash flow from financing activities Net Increase in cash 22,320 292,670 Cash balance, January 1, 2019 314.990 Cash balance, December 31, 2019