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 $303,530   $282,030   Accounts receivable (net) 109,960   101,290   Inventories 310,400   299,900   Investments 0   116,190   Land 159,210   0   Equipment 342,470   265,140   Accumulated depreciation—equipment (80,180)   (71,500)   Total assets $1,145,390   $993,050         Liabilities and Stockholders' Equity     Accounts payable (merchandise creditors) $207,320   $195,630   Accrued expenses payable (operating expenses) 20,620   25,820   Dividends payable 11,450   8,940   Common stock, $10 par 61,850   48,660   Paid-in capital in excess of par—common stock 232,510   135,050   Retained earnings 611,640   578,950   Total liabilities and stockholders’ equity $1,145,390   $993,050   Additional data obtained from an examination of the accounts in the 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 $135,940 cash. The common stock was issued for cash. There was a $79,360 credit to Retained Earnings for net income. There was a $46,670 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 outflows, cash payments, decreases in cash, or any negative adjustments.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 $303,530   $282,030  
Accounts receivable (net) 109,960   101,290  
Inventories 310,400   299,900  
Investments 0   116,190  
Land 159,210   0  
Equipment 342,470   265,140  
Accumulated depreciation—equipment (80,180)   (71,500)  
Total assets $1,145,390   $993,050  
     
Liabilities and Stockholders' Equity    
Accounts payable (merchandise creditors) $207,320   $195,630  
Accrued expenses payable (operating expenses) 20,620   25,820  
Dividends payable 11,450   8,940  
Common stock, $10 par 61,850   48,660  
Paid-in capital in excess of par—common stock 232,510   135,050  
Retained earnings 611,640   578,950  
Total liabilities and stockholders’ equity $1,145,390   $993,050  

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

  1. Equipment and land were acquired for cash.
  2. There were no disposals of equipment during the year.
  3. The investments were sold for $135,940 cash.
  4. The common stock was issued for cash.
  5. There was a $79,360 credit to Retained Earnings for net income.
  6. There was a $46,670 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 outflows, cash payments, decreases in cash, or any negative adjustments.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from 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, 20Y9
Cash flows from (used for) operating activities:
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Check My Work 2 more Check My Work uses remaining.
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Transcribed Image Text:Prepare a statement of cash flows, using the indirect method of presenting cash flows from 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, 20Y9 Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Check My Work 2 more Check My Work uses remaining. 6:10 PM O Type here to search 78°F 9/25/2021 -- KNCTR exe - Application Frror
Chapters 10 and 11 HOMEWORK X
CengageNOWv2| Online teachin x
https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogres.
Chapter 13 Homework
еBook
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Changes in current operating assets and liabilities:
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:
Net cash flow from financing activities
Cash balance, January 1, 2OY9
Cash balance, December 31, 20Y9
6:12 PM
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9/25/2021
2
-- KNCTR exe - Application Frror
Transcribed Image Text:Chapters 10 and 11 HOMEWORK X CengageNOWv2| Online teachin x https://v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogres. Chapter 13 Homework еBook Show Me How Print Item Changes in current operating assets and liabilities: 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: Net cash flow from financing activities Cash balance, January 1, 2OY9 Cash balance, December 31, 20Y9 6:12 PM O Type here to search 78°F 9/25/2021 2 -- KNCTR exe - Application Frror
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