The comparative balance sheet of Merrick Equipment Co for December 31, 20Y9 and 20Y8, is as follows Dec 31, 20Y9 Dec 31, 20Y8 Assets Cash $298,500 $278,310 Accounts receivable (net) 108,140 99,960 Inventories 305,250 295,960 Investments 0 114,660 Land 156,570 0 Equipment 336,800 261,650 Accumulated depreciationequipment (78,850) (70,560) Total assets $1,126,410 $979,980 Liabilities and Stockholders' Equity Accounts payable $203,880 $193,060 Accrued expenses payable 20,280 25,480 Dividends payable 11,260 8,820 Common stock, $10 par 60,830 48,020 Paid in capital Excess of issue price over par common stock 228,660 133,280 Retained earnings 601,500 571,320 Total liabilities and stockholders equity $1,126,410 $979,980 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows Equipment and land were acquired for cash There were no disposals of equipment during the year The investments were sold for $103,190 cash The common stock was issued for cash There was a $76,240 credit to Retained Earnings for net income There was a $46,060 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 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, 2019 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash flow from operating activities Depreciation Loss on sale of investments Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventories 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 Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year

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Posted on Sep 12, 2024

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

		Dec. 31, 20Y9	Dec. 31, 20Y8
Assets
Cash		$298,500	$278,310
Accounts receivable (net)		108,140	99,960
Inventories		305,250	295,960
Investments		0	114,660
Land		156,570	0
Equipment		336,800	261,650
Accumulated depreciationequipment		(78,850)	(70,560)
	Total assets	$1,126,410	$979,980

Liabilities and Stockholders' Equity
Accounts payable		$203,880	$193,060
Accrued expenses payable		20,280	25,480
Dividends payable		11,260	8,820
Common stock, $10 par		60,830	48,020
Paid-in capital: Excess of issue price over par-common stock		228,660	133,280
Retained earnings		601,500	571,320
	Total liabilities and stockholders equity	$1,126,410	$979,980

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The investments were sold for $103,190 cash.
The common stock was issued for cash.
There was a $76,240 credit to Retained Earnings for net income.
There was a $46,060 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 indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

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Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories 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: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year