Question
The comparative balance sheet of Merrick Equipment Co. for December 31, 2016 and 2015, is as follows: 1 Dec. 31, 2016 Dec. 31, 2015 2
The comparative balance sheet of Merrick Equipment Co. for December 31, 2016 and 2015, is as follows:
1 |
| Dec. 31, 2016 | Dec. 31, 2015 |
2 | Assets |
|
|
3 | Cash | $70,720.00 | $47,940.00 |
4 | Accounts receivable (net) | 207,230.00 | 188,190.00 |
5 | Inventories | 298,520.00 | 289,850.00 |
6 | Investments | 0.00 | 102,000.00 |
7 | Land | 295,800.00 | 0.00 |
8 | Equipment | 438,600.00 | 358,020.00 |
9 | Accumulated depreciation-equipment | (99,110.00) | (84,320.00) |
10 | Total assets | $1,211,760.00 | $901,680.00 |
11 | Liabilities and Stockholders Equity |
|
|
12 | Accounts payable (merchandise creditors) | $205,700.00 | $194,140.00 |
13 | Accrued expenses payable (operating expenses) | 30,600.00 | 26,860.00 |
14 | Dividends payable | 25,500.00 | 20,400.00 |
15 | Common stock, $1 par | 202,000.00 | 102,000.00 |
16 | Paid-in capital: Excess of issue price over parcommon stock | 354,000.00 | 204,000.00 |
17 | Retained earnings | 393,960.00 | 354,280.00 |
18 | Total liabilities and stockholders equity | $1,211,760.00 | $901,680.00 |
Additional data obtained from an examination of the accounts in the ledger for 2016 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. |
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.
List of Titles:
Cash paid for dividends | |
Cash paid for merchandise | |
Cash paid for purchase of equipment | |
Cash paid for purchase of land | |
Cash received from customers | |
Cash received from sale of common stock | |
Cash received from sale of investments | |
December 31, 2016 | |
Decrease in accounts payable | |
Decrease in accounts receivable | |
Decrease in accrued expenses payable | |
Decrease in cash | |
Decrease in inventories | |
Depreciation | |
For the Year Ended December 31, 2016 | |
Gain on sale of investments | |
Increase in accounts payable | |
Increase in accounts receivable | |
Increase in accrued expenses payable | |
Increase in cash | |
Increase in inventories | |
Loss on sale of investments | |
Net cash flow from financing activities | |
Net cash flow from investing activities | |
Net cash flow from operating activities | |
Net cash flow used for financing activities | |
Net cash flow used for investing activities | |
Net cash flow used for operating activities | |
Net income |
Please help me fix all the parts in Red!
Score: 135/178 Merrick Equipment Co Statement of Cash Flows For the Year Ended December 31, 2016 1 Cash flows from operating activities: 2 Net income 3Adjustments to reconcile net income to net cash flow from operating activities: $141,680.00 Depreciation 14,790.00 5 Loss on sale of investments 10,200.00 6Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Increase in accrued expenses payable 19,040.00 8,670.00 11,560.00 3,740.00 10 $154,260.00 11Net cash flow from operating activities 12 13 Cash flows from investing activities: 14 Cash paid for purchase of land 15 Less: Cash received from sale of investments 16 Less: Cash paid for purchase of equipment $295,800.00 $91,800.00 80,580.00Step by Step Solution
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