The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: December 31, 20Y9 Cash Accounts receivable (net) Inventories Investments Land Assets Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity $266,250 96,450 272,290 0 139,660 300,410 (70,330) $1,004,730 $181,860 18,090 10,050 e. There was a $67,450 credit to Retained Earnings for net income. f. There was a $41,130 debit to Retained Earnings for cash dividends declared. Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity 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 $119,800 cash. d. The common stock was issued for cash. 54,260 203,960 536,510 $1,004,730 December 31, 20Y8 $248,530 89,260 264,290 102,390 0 233,660 (63,010) $875,120 $172,400 22,750 7,880 42,880 119,020 510,190 $875,120

The comparative balance sheet of Merrick Equipment Co. for December 31,20Y9 and 20Y8, is as follows: 7 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 $119,800 cash. d. The common stock was issued for cash. e. There was a $67,450 credit to Retained Earnings for net income. f. There was a $41,130 debit to Retained Earnings for cash dividends declared. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20 Y9 Line Item Description Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts recelvable Increase in inventories v Increase in accounts payable Decrease in accrued expenses payable Net cash flows from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flows from financing activities Net increase in cash Cash balance, January 1, 20Yg Cash balance, December 31,20Y9 Amount Amount