Statement of cash flowsindirect method

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

Line Item Description	December 31, 20Y9	December 31, 20Y8
Assets
Cash	$292,440	$273,920
Accounts receivable (net)	105,940	98,380
Inventories	299,060	291,260
Investments	0	112,850
Land	153,390	0
Equipment	329,960	257,520
Accumulated depreciationequipment	(77,250)	(69,440)
Total assets	$1,103,540	$964,490
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$199,740	$190,000
Accrued expenses payable (operating expenses)	19,860	25,080
Dividends payable	11,040	8,680
Common stock, $10 par	59,590	47,260
Paid-in capital in excess of parcommon stock	224,020	131,170
Retained earnings	589,290	562,300
Total liabilities and stockholders' equity	$1,103,540	$964,490

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

1. Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $132,030 cash.
4. The common stock was issued for cash.
5. There was a $72,320 credit to Retained Earnings for net income.
6. There was a $45,330 debit to Retained Earnings for cash dividends declared.

Required: statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Line Item Description	Amount	Amount
Cash flows from (used for) operating activities:	blank
Cash paid for dividendsCash received from sale of common stockCash received from sale of investmentsLoss on sale of investmentsNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flows from (used for) operating activities:	blank
Accumulated depreciationCash paid for dividendsCash received from sale of common stockDepreciationRetained earningsDepreciation	Depreciation
Cash paid for dividendsCash received from the sale of common stockGain on sale of investmentsLoss on sale of investmentsRetained earningsGain on sale of investments	Gain on sale of investments
Changes in current operating assets and liabilities:	blank
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in accounts receivableLoss on sale of investmentsIncrease in accounts receivable	Increase in accounts receivable
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesGain on sale of investmentsIncrease in inventoriesIncrease in inventories	Increase in inventories
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in accounts payableIncrease in accrued expensesIncrease in accounts payable	Increase in accounts payable
Decrease in accounts payableDecrease in accrued expenses payableDecrease in dividends payableIncrease in accrued expenses payableIncrease in landDecrease in accrued expenses payable	Decrease in accrued expenses payable
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows from operating activitiesNet cash flows used for financing activitiesNet cash flows used for operating activitiesNet cash flows from operating activities	blank	$Net cash flows from operating activities
Cash flows from (used for) investing activities:	blank
Cash received from gain on sale of investmentsCash received from loss on sale of investmentsCash received from sale of common stockCash received from sale of investmentsCash received from retained earningsCash received from sale of investments	$Cash received from sale of investments
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for dividendsCash paid for purchase of landCash paid for purchase of land	Cash paid for purchase of land
Cash paid for accounts receivableCash paid for accrued expensesCash paid for accumulated depreciationCash paid for purchase of equipmentCash paid for retained earningsCash paid for purchase of equipment	Cash paid for purchase of equipment
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows from operating activitiesNet cash flows used for investing activitiesNet cash flows used for operating activitiesNet cash flows used for investing activities	blank	Net cash flows used for investing activities
Cash flows from (used for) financing activities:	blank
Cash received from net incomeCash received from sale of common stockCash received from sale of equipmentCash received from sale of investmentsCash received from retained earningsCash received from sale of common stock	$Cash received from sale of common stock
Cash paid for dividendsCash paid for inventoriesCash paid for purchase of investmentsCash paid for purchase of landCash paid for retained earningsCash paid for dividends	Cash paid for dividends
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows from operating activitiesNet cash flows used for financing activitiesNet cash flows used for investing activitiesNet cash flows from financing activities	blank	Net cash flows from financing activities
Cash received from gain on sale of investmentsCash received from loss on sale of investmentsCash received from sale of common stockNet decrease in cashNet increase in cashNet increase in cash	blank	$Net increase in cash
Cash balance, January 1, 20Y9	blank	Cash balance, January 1, 20Y9
Cash balance, December 31, 20Y9	blank	$Cash balance, December 31, 20Y9

Feedback Area