Statement of cash flows-indirect method The comparative balance sheet of Merrick Equipment Co0, for December 31, 20r9 and 20r8, is at fallow: December December 31, 20rg 31, 2ors Assets Cash Accounts recelvable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Pasd-in capital in excess of par-common stock Retained earnings Total liablities and stockholders' equity 327,670 100,590 283,950 0 145,650 313,300 $259,490 93,200 275,930 106,900 Additional data obtained from an examination of the accounts in the ledger for 20r9 are as follows: a. Equlpment and tand were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $125,070 cash. d. The common stock was issued for cash. e. There was a $69,790 credit to Retained Earnings for net income. e. There was a $69,790 credit to Retained Earnings for net income. t. There was a $42,940 debit to Retained Eamings for cash dividends declared, Required: Frepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash edjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20 Y 9 Merrick Equipment co. statement of Cash Flows For the Year Ended December 31, 20re Line Item Bescription Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operabing activeres: Loss on sale of investments x Changes in current operating assets and liabilities: Increase in accounts recelvable v Increase in inventories Increase in accounts payable Increase in accrued expenses payoble x Net cash flows 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 flows used for investing activities Cash flows from (used for) financing activities: Cash recelved from sale of common stock v Cash paid for dividends Not cash llows from financing activities Net increase in cash Cash balance, January 1, 20Y9 Cash balance, December 31, 20Y9