90.2K

Verified Solution

Link Copied!

The comparative balance sheet of Merrick Equipment Co$.$ for December $31,20$Y$9$ and $20$Y$8,$ is as follows:

Line Item Description December $31,20$Y$9$ December $31,20$Y$8$

Assets

Cash $$311,700$ $$292,290$

Accounts receivable $($net$)112,920104,980$

Inventories $318,760310,810$

Investments $0120,420$

Land $163,4900$

Equipment $351,690274,790$

Accumulated depreciation$$equipment $(82,340)(74,100)$

Total assets $$1,176,220$ $$1,029,190$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $$212,900$ $$202,750$

Accrued expenses payable $($operating expenses$)21,17026,760$

Dividends payable $11,7609,260$

Common stock, $$10$ par $63,52050,430$

Paid$-$in capital in excess of par$$common stock $238,770139,970$

Retained earnings $628,100600,020$

Total liabilities and stockholders' equity $$1,176,220$ $$1,029,190$

Additional data obtained from an examination of the accounts in the ledger for $20$Y$9$ are as follows:

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $$140,890$ cash.

The common stock was issued for cash.

There was a $$76,450$ credit to Retained Earnings for net income.

There was a $$48,370$ debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from $($used for$)$ operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Merrick Equipment Co$.$

Statement of Cash Flows

For the Year Ended December $31,20$Y$9$

Line Item Description Amount Amount

Cash flows from $($used for$)$ operating activities: blank

$$-$ Select $-$

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities: blank

$-$ Select $-$

$-$ Select $-$

Changes in current operating assets and liabilities: blank

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

blank $$-$ Select $-$

Cash flows from $($used for$)$ investing activities: blank

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

blank $-$ Select $-$

Cash flows from $($used for$)$ financing activities: blank

$$-$ Select $-$

$-$ Select $-$

blank $-$ Select $-$

blank $$-$ Select $-$

Cash balance, January $1,20$Y$9$ blank Cash balance, January $1,20$Y$9$

Cash balance, December $31,20$Y$9$ blank $Cash balance, December $31,20$Y$9$ Statement of cash flows$-$indirect method

The comparative balance sheet of Merrick Equipment Co$.$ for December $31,20$Y$9$ and $20$Y$8,$ is as follows:

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 $$140,890$ cash.

d$.$ The common stock was issued for cash.

e$.$ There was a $$76,450$ credit to Retained Earnings for net income.

f$.$ There was a $$48,370$ debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from $($used for$)$ operating activities.

Merrick Equipment Co$.$

Statement of Cash Flows

For the Year Ended December $31,20$Y$9$

Line Item Description

Cash flows from $($used for$)$ operating activities:

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

Changes in current operating assets and liabilities: Merrick Equipment Co$.$

Statement of Cash Flows

For the Year Ended December $31,20$ Y$9$

Line Item Description

Amount Amount

Cash flows from $($used for$)$ operating activities:

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

Changes in current operating assets and liabilities:

$

Cash flows from $($used for$)$ investing activities:

Cash flows from $($used for$)$ financing activities:

Cash balance, January $1,20Y9$

Cash balance, December $31,20Y9$

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer