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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31, Dec.

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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31, Dec. 31, 2019 2018 Assets Cash $239,530 $225,650 Accounts receivable (net) 86,770 81 040 Inventories 244,960 239,950 Investments 92,960 Land 125,640 0 Equipment 270,270 212,140 Accumulated depreciation-equipment (63,270) (57,210) Total assets $903,900 $794,530 0 $163,610 $156,520 20,660 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 16,270 9,040 7,150 48,810 38,930 183,490 108,060 482,680 463,210 Retained earnings 482,680 463,210 Total liabilities and stockholders' equity $903,900 $794,530 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. b. There were no disposals of equipment during the year. c. The investments were sold for $83,660 cash. d. The common stock was issued for cash, e. There was a $56,810 credit to Retained Earnings for net income. f. There was a $37,340 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 butflows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 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 0 Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net canh 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 investing activities Cash flows from used for) financing activities Cash received from sale of equipment 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

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