Answer Happy

Statement of Cash Flows
The comparative balance sheet of Merrick Equipment Co. for
December 31, 20Y9 and 20Y8, is as follows:
Additional data obtained from an examination of the accounts in
the ledger for 20Y9 are as follows:
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.
Statement of Cash Flows 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 Accounts receivable (net) Inventories Investments Land Equipment 215,290 Accumulated depreciation-equipment (58,060) Total assets $917,340 $806,340 Accounts payable $166,040 $158,850 Accrued expenses payable 16,510 20,960 Dividends payable 9,170 7,260 Common stock, $10 par 49,540 39,510 Excess of paid-in capital over par 186,220 109,660 Retained earnings 489,860 470,100 Total liabilities and stockholders' equity $917,340 $806,340 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 $84,910 cash. d. The common stock was issued for cash. e. There was a $57,660 credit to Retained Earnings for net income. f. There was a $37,900 debit to Retained Earnings for cash dividends declared. Liabilities and Stockholders' Equity $243,100 88,060 248,600 127,510 274,280 (64,210) 0 $229,000 82,250 243,520 94,340 0
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, 20Y9 Cash flows from (used for) operating activities: Net income ✓ 57,660 Adjustments to reconcile net income to net cash flows from (used for) operating 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 flows from operating activities Cash flows from (used for) investing activities: ✓ Cash received from sale of investments ✓ Cash paid for purchase of land Cash paid for purchase of equipment Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash received from issuing common stock Cash dividends Net cash flows from financing activities Net increase in cash ✓✓ Cash balance, January 1, 20Y9 Cash balance, December 31, 20Y9 ✓ 6,150 ✓ 9,430 ✓ -5,810 ✓ -5,080 ✓ 7,190 -4,450 ✓