Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2009 and 2048, is as follows: Dec. 31. Dec. 31, 2049 2048 Assets Cash $268,190 $249,190 Accounts receivable (net) 97,160 89,500 Inventories 274,260 264,990 Investments 0 102,660 Land 140,670 0 Equipment 302,600 234,280 Accumulated depreciation-equipment (70,840) (63,180) Total assets $1,012,040 $877,440 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par common stock Retained earnings Total liabilities and stockholders' equity $183,180 18,220 10,120 54,650 205,440 540,430 $1,012,040 $172,860 22,810 7,900 42,990 119,330 511,550 $877,440 Paid in capital: Excess of issue price over par common stock 205,440 540,430 $1,012.040 119,330 511,550 $877,440 Retained varnings Total liabilities and stockholders' equity Additional data obtained from an examination of the accounts in the ledger for 2019 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 $92,390 cash d. The common stock was issued for cash. e. There was a $70,120 credit to Retained Earnings for net income f. There was a $41,240 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 11, 2015 Cash flows from operating activities Net income Adusteks to reconcleret income to not cash flow from operating activities Depreciation Loss on sale of investments Changes in current operating assets and l ates: Increase in accounts receivable Increase in inventories Increase in accounts payable BOOK Merrick Equipment Co. Statement of Cash Flows for the Year Ended December 31, 2019 Cash Flows from operating activities: Net Income Adjustments to reconcle net income to net cash flow from operating activities: Depreciation Loss on sale of investments Changes in current operating assets and Bablities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for nvesting activities Cash flows from (used for) finanong activities Cash from sale of common stock Cash used for dividende et cash flow from finanong activities Increase in cash (Previous eBook Show Me How UCUENCIC Net cash flow from operating activities Cash flows from (used for) investing activities: Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment QUI tiet cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends 0 Net cash flow from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year
