Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2049 and 2048, is as follows: Dec. 31, 2049 Dec. 31, 2018 Assets Cash $235,910 $218,440 85,460 78,450 Accounts receivable (net) Inventories Investments 241,260 232,290 0 89,990 Land 123,740 0 205,370 Equipment Accumulated depreciation-equipment 266,180 (62,320) (55,380) $769,160 Total assets $890,230 $151,520 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par $161,130 16,020 20,000 8,900 6,920 48,070 37,690 Paid-in capital in excess of par-common stock 180,720 104,610 Retained earnings 475,390 448,420 Total liabilities and stockholders' equity $890,230 $769,160 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 $105,290 cash. d. The common stock was issued for cash. e. There was a $63,120 credit to Retained Earnings for net income. f. There was a $36,150 debit to Retained Earnings for cash dividends dedared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate outflows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2049 Cash flows from (used for) operating activities: Net income 63.120 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Changes in current operating assets and liabilities: 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 received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Net increase in cash Cash balance, January 1, 2019 Cash balance December 31, 2049