Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9...

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Accounting

Statement of Cash Flows—Indirect Method
The comparative balance sheet of Merrick Equipment Co. forDecember 31, 20Y9 and 20Y8, is as follows:
Dec. 31, 20Y9 Dec. 31, 20Y8
Assets
Cash $263,410 $246,720
Accounts receivable (net) 95,420 88,610
Inventories 269,380 262,370
Investments 0 101,640
Land 138,160 0
Equipment 297,200 231,960
Accumulated depreciation—equipment (69,580) (62,550)
Total assets $993,990 $868,750
Liabilities and Stockholders'Equity
Accounts payable $179,910 $171,140
Accrued expenses payable 17,890 22,590
Dividends payable 9,940 7,820
Common stock, $10 par 53,680 42,570
Paid-in capital: Excess of issue price overpar-common stock 201,780 118,150
Retained earnings 530,790 506,480
Total liabilities and stockholders’ equity $993,990 $868,750
Additional data obtained from an examination of the accounts inthe 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 $91,480 cash.
The common stock was issued for cash.
There was a $65,140 credit to Retained Earnings for netincome.
There was a $40,830 debit to Retained Earnings for cashdividends declared.
Required:
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash outflows, cash payments, decreases in cash, or anynegative adjustments.
Merrick Equipment Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y9
Cash flows from operating activities:
Net income $
Adjustments to reconcile net income to net cash flow fromoperating activities:
Depreciation
Loss on sale of investments
Changes in current operating assets and liabilities:
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 $
Cash used for purchase of land
Cash used for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash from sale of common stock
Cash used for dividends
Net cash flow from financing activities
Increase in cash $
Cash at the beginning of the year
Cash at the end of the year $

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Merrick Equipment Co Statement of Cash Flows For the Year Ended December 31 20Y9 Cash flows from operating activities Net income 6514000 Adjustments to reconcile net income to net cash flow from See Answer

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		Dec. 31, 20Y9	Dec. 31, 20Y8
Assets
Cash		$263,410	$246,720
Accounts receivable (net)		95,420	88,610
Inventories		269,380	262,370
Investments		0	101,640
Land		138,160	0
Equipment		297,200	231,960
Accumulated depreciation—equipment		(69,580)	(62,550)
	Total assets	$993,990	$868,750

Liabilities and Stockholders'Equity
Accounts payable		$179,910	$171,140
Accrued expenses payable		17,890	22,590
Dividends payable		9,940	7,820
Common stock, $10 par		53,680	42,570
Paid-in capital: Excess of issue price overpar-common stock		201,780	118,150
Retained earnings		530,790	506,480
	Total liabilities and stockholders’ equity	$993,990	$868,750

Merrick Equipment Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y9
Cash flows from operating activities:
Net income	$
Adjustments to reconcile net income to net cash flow fromoperating activities:
Depreciation
Loss on sale of investments
Changes in current operating assets and liabilities:
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	$
Cash used for purchase of land
Cash used for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash from sale of common stock
Cash used for dividends
Net cash flow from financing activities
Increase in cash		$
Cash at the beginning of the year
Cash at the end of the year		$