Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

takeAssignment Main.do?invoker-assignments&takeAssignmentSessionLocator assignment-tako&inprogress-false eBook Show Me How Calculator Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019

image text in transcribed
image text in transcribed
takeAssignment Main.do?invoker-assignments&takeAssignmentSessionLocator assignment-tako&inprogress-false eBook Show Me How Calculator Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 208, is as follows: Dec. 31, Dec. 31, 2019 2018 Assets Cash $70,720 $47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 102,000 Land 295,800 Equipment 438,600 358,020 Accumulated depreciation-equipment (99,110) (84,320) Total assets $901,680 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable $205,700 30,600 25,500 202.000 354,000 393,950 $194,140 26,860 20,400 102,000 204,000 Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings 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 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 $91,800 cash. d. The common stock was issued for cash. e. There was a $141,680 credit to Retained Earnings for net income f. There was a $102,000 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 Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Check My Work assignment/takeAssignment Main.do?invokerassignments&takeAssignmentSessionLocator assignment-takeinprogress-false Show Me How Calculator a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $91,800 cash. d. The common stock was issued for cash. e. There was a $141,680 credit to Retained Earnings for net income f. There was a $102,000 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 si Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2049 chos.from.operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and abilities: 0 01 010 pod Net cash flow from operating activities Cash flows from used for) investing activities Net cash flow used for investing activities Cash flows from (used for) financing activities: et cash flow from financing activities Cash at the beginning of the year Cash at the end of the year Check My Work All work saved

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of External Auditing

Authors: Brenda Porter, David Hatherly, Jon Simon

3rd Edition

0470018259, 9780470018255

More Books

Students also viewed these Accounting questions

Question

What aspects of product design are important for TIT/lean?

Answered: 1 week ago