Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, Is as follows: Dec. 31, 20Y9 Dec. 31, 20YB Assets Cash Accounts receivable (net) Inventories Investments $302,570 $284,700 109,610 102,250 309,420 302,760 0 117,290 158,710 341,390 267,660 (79,920) (72,180) Land Equipment Accumulated depreciation-equipment $1,141,780 $1,002,480 Total assets Liabilities and Stockholders' Equity $206,660 $197,490 Accounts payable 20,550 26,060 Accrued expenses payable 00% mi- Wed 10:55PM eBook Show Me How Caicuiator Llablilties 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 $206,660 $197,490 26,060 9,020 61,660 49,120 231,780136,340 609,710584,450 $1,141,780 $1,002,480 20,550 11,420 Total liabilities and stockholders' equity Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows a. Equipment and land were acquired for cash. bThere were no disposals of equipment during the year. c. The investments were sold for $105,560 cash. d. The common stock was issued for cash. e. There was a $72,380 credit to Retained Earnings for net income. f. There was a $47,120 debit to Retained Earmings 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 out flows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows Check My Work Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from 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 Decrease in accrued expenses payable in accounts payable Net cash fiow 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 investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Increase in inventories Increase in accounts payable Decrease in accrued expenses payable let cash flow from operating activities ash flows from (used for) investing activities: Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment et cash flow used for investing activities ash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Net cash flow from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year Feedback eck My Work