The comparative balance sheet of Merrick Equipment Co. for December 31, 2016 and 2015, is as follows:

Liabilities and Stockholders' Equity

Additional data obtained from an examination of the accounts in the ledger for 2016 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 $91,800 cash.
d. The common stock was issued for cash.
e. There was a $141,680 credit to Retained Earnings for net income.
f. There was a $102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities?

Transcribed Image Text:

Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable (net) ...$ 70,720 207,230 298,520 0 295,800 438,600 (99,110) 1,211,760 47,940 188,190 289,850 102,000 Land Equipment. Accumulated depreciation-equipment 358,020 (84,320) $901,680 .. . Total assets $194,140 26,860 20,400 102,000 Accrued expenses payable (operating expenses) 30,600 25,500 202,000 354,000 393,960 Paid-in capital: Excess of issue price over par-common stock.......... 354,280 $901,680