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The cocriparative balance sheet of Merrick Equipment Co. for December 31, 20rg and 20Yg, is as follows: December December 31, 20Y9 31, 20Y8 Assets Cash
The cocriparative balance sheet of Merrick Equipment Co. for December 31, 20rg and 20Yg, is as follows: December December 31, 20Y9 31, 20Y8 Assets Cash Accounts recelvable (net) Inventorias Investments Land Equipinent $278,300=$257,990 100,82092,660 284,590=274,340 Accumulated depreciation-equipment Total assets. 0106,280 145,9800 314,010242,550 Liabilities and Stockholders' Equity Accounts payable (merchandise credisors) Accrued expenses payable (operaling expenses) $190,080 $178,960 Dividends payable 18,900 23,620 Common stock, $10 Dar 10,500 8,180 Paid-in capital in excess of por-common stock 56.710 44,510 Retained carnings 213.190 123.540 Total liabilines and stockfolders' equity 560,810 579,600 51,050,190$90,410 Additional data obtained from an exmmation of the accounts in the ledger for 20rg are as follows: a. Equipment and tand were acquered for cash b. There were no disposals of equipment during the year. c. The imvestments were sold for 5124,350 cash. d. The commion stock was issued for cash e. There was a $73,910 credit to fictained Farnings for not income. 1. There was a $42,700 debt to Retained Earnings far cash dividends declared. Required: Prepare a statement of cash fiows, using the indirect method of piresenting cash flows from (usod for) operating sctwities Use the minus sign to indicate cath cutflows, cash payments, decreases in cash, or any negotive adjustinents. Merrick fquipment Co. Statement of Cash flowrs For the Year Fnded December 31, 20rg Lise Item Description Cash fows from (osed for) operating activitios extivalles: Poid in capital in excoss of par-common stock Retained earnings Totat liabilities and stockholders' equity Mdditional data obtained from an examination of the accounts in the ledger for 20rg are as follows: a. Equipment and land were acquired loc cash. b. There were no disposals of equipment during the year, c. The investments were sold for $124,350 cash. d. The common stock was ksued for cash. e. There was a $73,910 credit to Retained Earnings for net incame. f. There was a $42,700 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash floms from (used for) operating activities, Use the minus sign to indicate cash outflows, Cash payments, decreases in cash, or any neootive adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Vg Line Item Description Amount Amount Cash flows from (used foc) oporating activities: Adjustments to reconcile net income to net cash flows from (used fot) eperating octivities: Changes in current operating assets and liabilities: Cosh nows from (used for) investing activiles: Cash flows from (used for) financing activitien: Cash balance, Janairy 1, 20y9 Cast balance, Decomber 31, 20v9
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