The comparative balance sheet of Merrick Equipment Co$.$ for December $31,20$Y$9$ and $20$Y$8,$ is as follows:

Line Item Description December $31,20$Y$9$ December $31,20$Y$8$

Assets

Cash $$70,720$ $$47,940$

Accounts receivable $($net$)207,230188,190$

Inventories $298,520289,850$

Investments $0102,000$

Land $295,8000$

Equipment $438,600358,020$

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$)30,60026,860$

Dividends payable $25,50020,400$

Common stock, $$1$ par $202,000102,000$

Paid$-$in capital in excess of par$$common stock $354,000204,000$

Retained earnings $393,960354,280$

Total liabilities and stockholders' equity $$1,211,760$ $$901,680$

Additional data obtained from an examination of the accounts in the ledger for $20$Y$9$ are as follows:

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $$91,800$ cash.

The common stock was issued for cash.

There was a $$141,680$ credit to Retained Earnings for net income.

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 $($used for$)$ 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 $31,20$Y$9$

Line Item Description Amount Amount

Cash flows from $($used for$)$ operating activities:

Net income

$Net income

$141,680$

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

Depreciation

Depreciation

$99,110$

Gain on sale of investments

Gain on sale of investments

Changes in current operating assets and liabilities:

Increase in accounts receivable

Increase in accounts receivable

$19,040$

Increase in inventories

Increase in inventories

$8,670$

Increase in accounts payable

Increase in accounts payable

$11,560$

Increase in accrued expenses payable

Increase in accrued expenses payable

$3,740$

Net cash flows used for operating activities

$Net cash flows used for operating activities

$198,780$

Cash flows from $($used for$)$ investing activities:

Cash received from sale of investments

$Cash received from sale of investments

$91,800$

Cash paid for purchase of land

Cash paid for purchase of land

$295,800$

blank

Cash paid for purchase of equipment

Cash paid for purchase of equipment

$80,580$

Net cash flows used for investing activities

Net cash flows used for investing activities

$284,580$

Cash flows from $($used for$)$ financing activities:

Cash received from sale of common stock

$Cash received from sale of common stock

$100,000$

Cash paid for dividends

Cash paid for dividends

$102,000$

Net cash flows from financing activities

Net cash flows from financing activities

$2,000$

Net increase in cash

$Net increase in cash

$87,800$

Cash balance, January $1,20$Y$9$ Cash balance, January $1,20$Y$9$

$47,940$

Cash balance, December $31,20$Y$9$ $Cash balance, December $31,20$Y$9$

$-39,860$Statement of cash flows$-$indirect method

The comparative balance sheet of Merrick Equipment Co$.$ for December $31,20V9$ and $20$V$8,$ is as follows:

December December

$31,20Y9,31,20Y8$

Additional data obtained from an examination of the accounts in the ledger for $20V9$ 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:

Merrick Equipment Co$.$

Statement of Cash Flows

For the Year Ended December $31,20$ Y$9$

Line Item Description

Cash flows from $($used for$)$ operating activities:

Net income

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

Gain on sale of investments $-x$

Changes in current operating assets and liabilities:

Increase in accounts receivable $*$

Increase in inventories $$

Increase in accounts payable $*$

Increase in accrued expenses payable $*$

Net cash flows used for operating activities $x$

Cash flows from $($used for$)$ investing activities:

Cash received from sale of investments $$

Cash paid for purchase of land $v$

Cash paid for purchase of equipment $$

Net cash flows used for investing activities