Question
Statement of Cash FlowsIndirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9
Statement of Cash FlowsIndirect Method
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:
| Dec. 31, 20Y9 | Dec. 31, 20Y8 | ||||
| Assets | |||||
| Cash | $299,370 | $275,920 | |||
| Accounts receivable (net) | 108,450 | 99,100 | |||
| Inventories | 306,160 | 293,410 | |||
| Investments | 0 | 113,670 | |||
| Land | 157,030 | 0 | |||
| Equipment | 337,780 | 259,400 | |||
| Accumulated depreciationequipment | (79,080) | (69,950) | |||
| Total assets | $1,129,710 | $971,550 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable (merchandise creditors) | $204,480 | $191,400 | |||
| Accrued expenses payable (operating expenses) | 20,330 | 25,260 | |||
| Dividends payable | 11,300 | 8,740 | |||
| Common stock, $10 par | 61,000 | 47,610 | |||
| Paid-in capital in excess of parcommon stock | 229,330 | 132,130 | |||
| Retained earnings | 603,270 | 566,410 | |||
| Total liabilities and stockholders equity | $1,129,710 | $971,550 | |||
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
- Equipment and land were acquired for cash.
- There were no disposals of equipment during the year.
- The investments were sold for $132,990 cash.
- The common stock was issued for cash.
- There was a $82,520 credit to Retained Earnings for net income.
- There was a $45,660 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, 20Y9 | ||
| Cash flows from (used for) operating activities: | fill in the blank | |
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| fill in the blank | ||
| fill in the blank | ||
| Changes in current operating assets and liabilities: | ||
| fill in the blank | ||
| fill in the blank | ||
| fill in the blank | ||
| fill in the blank | ||
| Net cash flow from operating activities | fill in the blank | |
| Cash flows from (used for) investing activities: | ||
| fill in the blank | ||
| fill in the blank | ||
| fill in the blank | ||
| Net cash flow used for investing activities | fill in the blank | |
| Cash flows from (used for) financing activities: | ||
| fill in the blank | ||
| fill in the blank | ||
| Net cash flow from financing activities | fill in the blank | |
| fill in the blank | ||
| Cash balance, January 1, 20Y9 | fill in the blank | |
| Cash balance, December 31, 20Y9 | fill in the blank | |
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
