Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2098, is as follows: Dec. 31, 2049 Dec. 31, 2048 Assets Cash Accounts receivable (net) Inventories Investments $314,490 113,930 321,610 $291,200 104,590 309,660 119,970 0 Land 0 Equipment Accumulated depreciation-equipment 164,960 354,840 (83,070) $1,186,760 273,770 (73,830) $1,025,360 Total assets Llabilities and Stockholders' Equity Accounts payable (merchandise creditors) $214,800 $202,000 Accrued expenses payable (operating expenses) 21,360 26,660 Dividends payable 11,870 9,230 Common stock, $10 par 64,090 50,240 Paid-in capital in excess of par-common stock 240,910 139,450 Retained earnings 633,730 597,780 Total liabilities and stockholders' equity $1,186,760 $1,025,360 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 $140,360 cash. d. The common stock was issued for cash. e. There was a $84,140 credit to Retained Earnings for net income. 1. There was a $48,190 debit to Retained Earnings for cash dividends declared. 84,140 Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2049 Cash flows from (used for) operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in Inventories Increase in accounts payable 9,240 -20,390 Increase maccrued expenses pavabo Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash balance, January 1, 2019 Cash balance, December 31, 2019