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Statement of Cash Flows-Indirect Method 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 Accounts receivable (net) $251,390 $233,860 91,070 257,100 248,680 83,990 96,340 Land 31,860 0 283,650 219,860 (66,410) (59.290) $948,660 $823.440 Total assets Liabilities and Stockholders Equity Accounts payable Accrued expenses payable Dividends payable Common stock, S10 par Paid-in capital: Excess of issue price over par-common stock 192,580 Retained earnings 171,710 $162,220 17,080 9,490 51,230 21,410 7,410 40,350 990 506,570 480,060 $948,660 $823,440 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 $86,710 cash. d. The common stock was issued for cash. e. There was a S65,210 credit to Retained Earnings for net ncome f. There was a $38,700 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 out flows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows Cash flows from operating activities Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on sale investments Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventorie Increase in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash from S sale of investments Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for investing activities

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