Question
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 | $231,740 | $216,560 | |||
Accounts receivable (net) | 83,950 | 77,780 | |||
Inventories | 236,980 | 230,290 | |||
Investments | 0 | 89,220 | |||
Land | 121,550 | 0 | |||
Equipment | 261,470 | 203,600 | |||
Accumulated depreciationequipment | (61,210) | (54,900) | |||
Total assets | $874,480 | $762,550 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable | $158,280 | $150,220 | |||
Accrued expenses payable | 15,740 | 19,830 | |||
Dividends payable | 8,740 | 6,860 | |||
Common stock, $10 par | 47,220 | 37,360 | |||
Paid-in capital: Excess of issue price over par-common stock | 177,520 | 103,710 | |||
Retained earnings | 466,980 | 444,570 | |||
Total liabilities and stockholders equity | $874,480 | $762,550 |
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 $80,300 cash.
- The common stock was issued for cash.
- There was a $58,250 credit to Retained Earnings for net income.
- There was a $35,840 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: | ||
Net income | $ | 58,250 |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Depreciation | 6310 | |
Loss on sale of investments | 8920 | |
Changes in current operating assets and liabilities: | -6170 | |
Increase in accounts receivable | ||
Increase in inventories | ||
Increase 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 | $ | |
? | ||
? | ||
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 | $ |
Can you please provide the way to find the information? In parenthesis or some way that I can identify the method of calculating them?
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