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The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, Is as follows: Assets Cash Accounts receivable (net) Inventorles Investments Land
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, Is as follows: Assets Cash Accounts receivable (net) Inventorles Investments Land Equipment Accumulated depreciation-equipment Total assets Dec. 31, Dec. 31, 2019 20Y8 $258,080 $238,410 93,490 85,630 263,920 253,520 0 98,220 135,370 0 291,190 224,140 (68,170) (60,440) $973,880 $839,480 Liabilities and Stockholders' Equity Accounts payable $176,270 $165.380 Accrued expenses payable 17,530 21,830 Dividends payable 9,740 7,560 Common stock, $10 par 52,590 41,130 Pald-In capital: Excess of issue price over par-common stock 197,700 114,170 Retained earnings 520,050 489,410 Total liabilities and stockholders' equity $973,880 $839,480 Additional data obtained from an examination of the accounts in the ledger for 20Y9 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 $88,400 cash. d. The common stock was issued for cash. e. There was a $70,100 credit to Retained Earnings for net Income. f. There was a $39,460 debit to Retained Earnings for cash dividends declared. Required: Prepare the statement of cash flows, entering the correct amounts for the blank fields. 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: Net income 70.100 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 7,730 Loss on sale of investments 9.820 Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Decrease in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Net cash flow from financing activities Increase in cash Cash at the beginning of the year Cash at the end of the year -135,370 -67,050 94.990 -37.280 75,980 -114.020
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