The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets $ 70,720 $ 47,940 Cash Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 102,000 Investments Land 295 800 Equipment. 438,600 358,020 (84,320) $901,680 Accumulated depreciation-equipment (99,110) $1211,760 Totalassets Llabilitles and Stockholders' Equity Accounts payable Accrued expenses payable. Dividends payable.. Common stock, $1 par.. $ 205,700 $194,140 30,600 26,860 25,500 20,400 102,000 202,000 Paid-in capital: Excess of issue price over par-common stock... Retained earnings..... Total liabilities and stockholders'equity.. 354,000 204,000 393,960 $1211,760 354,280 $901,680 The income statement for the year ended December 31, 20Y9, is as follows: Sales $2,023,898 Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses 1,245,476 $ 778,422 $ 14,790 517,299 Total operating expenses. Operating income. Other expenses: 532,089 $ 246,333 Loss on sale of investments (10,200) $ 236,133 Income before income tax Income tax expense Net income.. 94,453 $ 141,680 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 $91,800 cash. d. The common stock was issued for cash. e. There was a $102,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.

Computation.

The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8: Dec. 31, 20Y9 Dec. 31, 20Y8 Cash $608,800 $459,600 Temporary investments 649,600 503,500 Accounts and notes receivable (net) 597,600 548,900 Inventories 835,200 680,400 Prepaid expenses 380,800 215,600 Total current assets $3,072,000 $2,408,000 Accounts payable $371,20 $392,000 Accrued liabilities 268,800 168,000 Total current liabilities $640,000 $560,000 a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. 20Y9 . 20Y8 Working capital Current ratio Quick ratio b. The liquidity of Osborn Sisters Company has from 20Y8 to the 20Y9. The working capital, current ratio, and quick ratio have all Most of these changes are the result of

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 $296,640   $278,810   Accounts receivable (net) 107,460   100,130   Inventories 303,350   296,470   Investments 0   114,860   Land 155,600   0   Equipment 334,700   262,120   Accumulated depreciation—equipment (78,360)   (70,680)   Total assets $1,119,390   $981,710         Liabilities and Stockholders' Equity     Accounts payable (merchandise creditors) $202,610   $193,400   Accrued expenses payable (operating expenses) 20,150   25,520   Dividends payable 11,190   8,840   Common stock, $10 par 60,450   48,100   Paid-in capital in excess of par—common stock 227,240   133,510   Retained earnings 597,750   572,340   Total liabilities and stockholders’ equity $1,119,390   $981,710   Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land…