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The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31, 2049 Dec. 31, 2018 Assets Cash
The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31, 2049 Dec. 31, 2018 Assets Cash $257,960 $242,450 Accounts receivable (net) 93,450 263,790 Inventories 87,080 257,820 99,880 0 Investments Land 135,310 0 Equipment 291,060 227,940 Accumulated depreciation equipment (68,140) (61,470) Total assets $973,430 $853,700 $176,190 $168,180 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable 17,520 22,200 Common stock, $10 par Paid-in capital in excess of par-common stock 9,730 7,680 52,570 41,830 197,610 116,100 519,810 497,710 $973,430 $853,700 Retained earnings Total liabilities and stockholders' equity Additional data obtained from an examination of the accounts in the ledger for 2049 are as follows: 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 $116,860 cash. d. The common stock was issued for cash. e. There was a $62,220 credit to Retained Earnings for net income. f. There was a $40,120 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. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 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 balance, January 1, 2019 LLI
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