Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 3, 20YB Assets Cash
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 3, 20YB Assets Cash $272,270 $255,610 91,800 271,800 0 105,300 Accuunts receivable (net) 98,630 278,130 Land Equipment Accumulated depro 142,810 07,00 240,310 (71,920) (64,800) Total assets $1,07,40 900,00 Liabilitics and Stockholders' Equity Accounts payable Accrued cxpenses payable Divideids payable Common stock, $10 par Paid-in capital: Excess of issue price over par-coion stuck Retained earnings 185,960177,300 23,400 8,100 44,100 122,400 524,720 $1,027,420 $900,020 18,490 10,270 55,480 208,570 518,650 Total liabilities and stockholders' equity Additional data obtained from n examination of the accounts in the ledger for 20yg are s follows a. Equipment and land were acquired for cash. b. There were no disposals of eient during the year C. The investments were sold for $91,770 cash. d. The common stock was issued for cash e. There was a $66,230 credit to Retained Eanings for net income. f. There was a $4,300 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, 20Y9 Cash flows from operating activities: Adjustments to reooncile net income to net cash flow from operating activitios: Changes In aurrent operating assets and lablitles: Net cash flow from operating activities Cesh et the endof the year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started