Statement of cash inflows- indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 2016 and 2015, is as follows: Assets December 31, 2016 December 31, 2015 Cash $70,720 $47,490 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 0 102,000 Land 295,800 0 Equipment 438,600 358.020 Accumulated depreciation equipment (99,110) (84,320) Total assets 1,211,760 901,680

Liabilities and Stockholders Equity Accounts payable (merchandise creditors) $205,700 $194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends payable 25,500 20,400 Common Stock, $1 par 202,000 102,000 Paid-in-capital: Excess of issue price over par common stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders Equity 1,211,760 901,680

Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows: a. Equipment and land were acquired or cash. b. There were no disposals of equipment during the year. c. The investments were sold for $91,800 for cash. d. The common stock was issued for cash. e. There was a $141,680 credit for the Retained Earnings for net income. f. There was $102,000 debit to Retained Earnings for cash dividends declared.

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Here's the spreadsheet I have to complete

MERRICK EQUIPMENT CO. Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on inventory write down and fixed assets Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow provided by financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year Optional: MERRICK EQUIPMENT CO. Spreadsheet (Work Sheet) for Statement of Cash Flows For the Year Ended December 31, 2016 Balance, Transactions Balance, Dec. 31, 2015 Debit Credit Dec. 31, 2016 Cash 47,940 70,720 Accounts receivable (net) 188,190 207,230 Inventories 289,850 298,520 Investments 102,000 - Land - 295,800 Equipment 358,020 438,600 Accum. depr. - equipment (84,320) (99,110) Accounts payable (194,140) (205,700) Accrued expenses payable (26,860) (30,600) Dividends payable (20,400) (25,500) Common stock, $1 par (102,000) (202,000) Paid-in capital in excess of par (204,000) (354,000) Retained earnings (354,280) (393,960) Totals - - Operating activities: Net income Depreciation Loss on sale of investments Increase in accounts receivable Increase in inventories Increase in accounts payable Increase in accrued expenses payable Investing activities: Purchase of equipment Purchase of land Sale of investments Financing activities: Declaration of cash dividends Sale of common stock Increase in dividends payable Net increase in cash Totals