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The comparative balance sheet of Merrick Equipment Co. for December 31

Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2048, is as follows: Dec. 31, 2019 Dec. 31, 2018 Assets Cash $240,530 Accounts receivable (net) $256,210 92,820 262,010 86,390 Inventories 255,780 Investments 0 99,090 134,390 0 Land Equipment Accumulated depreciation-equipment 289,090 226,140 (60,980) (67,680) Total assets $966,840 $846,950 Liabilities and Stockholders' Equity $166,850 Accounts payable Accrued expenses payable $175,000 17,400 22,020 7,620 Dividends payable 9,670 Common stock, $10 par 52,210 41,500 Paid-in capital: Excess of issue price over par-common stock 196,270 115,190 Retained earnings 516,290 493,770 Total liabilities and stockholders' equity $966,840 $846,950 Additional data obtained from an examination of the accounts in the ledger for 2049 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 $89,180 cash. d. The common stock was issued for cash. e. There was a $62,330 credit to Retained Earnings for net income. f. There was a $39,810 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 indica outflows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Loss on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Q Il blol QoO Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Increase in accounts receivable Increase in inventories Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: lll. QUO IO 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

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