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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 | $223,540 | $208,900 | |||
Accounts receivable (net) | 80,980 | 75,030 | |||
Inventories | 228,600 | 222,140 | |||
Investments | 0 | 86,060 | |||
Land | 117,250 | 0 | |||
Equipment | 252,220 | 196,400 | |||
Accumulated depreciationequipment | (59,050) | (52,960) | |||
Total assets | $843,540 | $735,570 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $152,680 | $144,910 | |||
Accrued expenses payable (operating expenses) | 15,180 | 19,120 | |||
Dividends payable | 8,440 | 6,620 | |||
Common stock, $10 par | 45,550 | 36,040 | |||
Paid-in capital in excess of parcommon stock | 171,240 | 100,040 | |||
Retained earnings | 450,450 | 428,840 | |||
Total liabilities and stockholders equity | $843,540 | $735,570 |
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 $100,690 cash.
- The common stock was issued for cash.
- There was a $56,180 credit to Retained Earnings for net income.
- There was a $34,570 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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