Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2049 and 2088, is as follows: Dec. 31, 2049 Dec. 31, 2048 Assets Cash $309,480 $289,220 112,110 103,870 316,500 307,550 119,150 0 Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment Total assets 162,330 0 349,190 271,900 (81,750) (73,320) $1,167,860 $1,018,370 $211,380 $200,620 21,020 26,480 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings 11,680 9,170 49,900 63,060 237,080 138,500 593,700 623,640 $1,167,860 Total liabilities and stockholders' equity $1,018,370 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 $139,410 cash. d. The common stock was issued for cash. e. There was a $77,800 credit to Retained Earnings for net income. f. There was a $47,860 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. 77,800 8,430 For the Year Ended December 31, 2019 Cash flows from (used for) operating activities: Net income 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: Increase in accounts receivable Increase in inventories Increase in accounts payable 20,260 -8,240 -8,950 10,760 Decrease in accrued expenses payable -5,460 Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from gain on sale of investments Cash paid for purchase of land Cash paid for purchase of equipment 162,330 77,290 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 111,740 45,350 Net cash flow from financing activities Net increase in cash Cash balance, January 1, 2049 Cash balance, December 31, 2049 $