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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Dec. 31 2049
Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Dec. 31 2049 Dec. 31, 2048 Assets Cash $290,060 $312,900 113,350 Accounts receivable (net) 104,180 Inventories 319,980 308,440 119,500 Investments Land 164, 120 Equipment 353,040 (82,650) 272,700 (73,540) Accumulated depreciation equipment Total assets $1,180,740 $1,021,340 Liabilities and Stockholders' Equity Accounts payable $213,710 21,250 $201,200 26,550 Accrued expenses payable Dividends payable 9,190 11,810 63,760 Common stock, $10 par Paid-in capital: Excess of issue price over par common stock 239,690 50,050 138,900 595,450 $1,021,340 Retained earnings 630,520 $1,180,740 Total liabilities and stockholders' equity 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 $107,550 cash. d. The common stock was issued for cash e. There was a $83,070 credit to Retained Earnings for net income. There was a $48.000 debit to Retained Earnings for cash dividends declared. 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. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: 1001 Qul II Net cash Mow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
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