Question

In: Accounting

Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows:

Dec. 31, 20Y9 Dec. 31, 20Y8
Assets
Cash $236,660 $218,630
Accounts receivable (net) 85,730 78,520
Inventories 242,020 232,490
Investments 0 90,070
Land 124,140 0
Equipment 267,020 205,540
Accumulated depreciation—equipment (62,510) (55,430)
Total assets $893,060 $769,820
Liabilities and Stockholders' Equity
Accounts payable $161,640 $151,650
Accrued expenses payable 16,080 20,020
Dividends payable 8,930 6,930
Common stock, $10 par 48,230 37,720
Paid-in capital: Excess of issue price over par-common stock 181,290 104,700
Retained earnings 476,890 448,800
Total liabilities and stockholders’ equity $893,060 $769,820

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 $81,060 cash.
  4. The common stock was issued for cash.
  5. There was a $64,270 credit to Retained Earnings for net income.
  6. There was a $36,180 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.

Solutions

Expert Solution

Cash flows from operating activities:
Net income 64270
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation 7080
Loss on sale of investments 9010
Changes in current operating assets and liabilities:
Increase in accounts receivable -7210
Increase in inventories -9530
Increase in accounts payable 9990
Increase in accrued expenses payable -3940
Net cash flow from operating activities 69670
Cash flows from investing activities:
Cash received from sale of investments 81060
Cash paid for purchase of land -124140
Cash paid for purchase of equipment -61480
Net cash flow used for investing activities -104560
Cash flows from financing activities:
Cash from sale of common stock 87100
Cash paid for dividends -34180
Net cash flow from financing activities 52920
Increase in cash 18030
Cash at the beginning of the year 218630
Cash at the end of the year 236660

ekkarill92 answered 5 months ago
Next > < Previous

Related Solutions

Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $293,780 $272,340 Accounts receivable (net) 106,430 97,810 Inventories 300,420 289,590 Investments 0 112,200 Land 154,100 0 Equipment 331,470 256,040 Accumulated depreciation—equipment (77,600) (69,040) Total assets $1,108,600 $958,940 Liabilities and Stockholders' Equity Accounts payable $200,660 $188,910 Accrued expenses payable 19,950 24,930 Dividends payable 11,090 8,630 Common stock, $10 par 59,860 46,990...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $316,210 $294,490 Accounts receivable (net) 114,550 105,770 Inventories 323,360 313,140 Investments 0 121,320 Land 165,860 0 Equipment 356,780 276,860 Accumulated depreciation—equipment (83,530) (74,660) Total assets $1,193,230 $1,036,920 Liabilities and Stockholders' Equity Accounts payable $215,970 $204,270 Accrued expenses payable 21,480 26,960 Dividends payable 11,930 9,330 Common stock, $10 par 64,430 50,810...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $300,740 $278,470 Accounts receivable (net) 108,950 100,010 Inventories 307,540 296,120 Investments 0 114,720 Land 157,750 0 Equipment 339,320 261,800 Accumulated depreciation—equipment (79,440) (70,600) Total assets $1,134,860 $980,520 Liabilities and Stockholders' Equity Accounts payable $205,410 $193,160 Accrued expenses payable 20,430 25,490 Dividends payable 11,350 8,820 Common stock, $10 par 61,280 48,050...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $296,610 $277,190 Accounts receivable (net) 107,450 99,550 Inventories 303,330 294,760 Investments 0 114,190 Land 155,580 0 Equipment 334,670 260,600 Accumulated depreciation—equipment (78,350) (70,270) Total assets $1,119,290 $976,020 Liabilities and Stockholders' Equity Accounts payable $202,590 $192,280 Accrued expenses payable 20,150 25,380 Dividends payable 11,190 8,780 Common stock, $10 par 60,440 47,820...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $307,580 $286,120 Accounts receivable (net) 111,430 102,760 Inventories 314,540 304,260 Investments 0 117,880 Land 161,340 0 Equipment 347,050 269,000 Accumulated depreciation—equipment (81,250) (72,540) Total assets $1,160,690 $1,007,480 Liabilities and Stockholders' Equity Accounts payable $210,080 $198,470 Accrued expenses payable 20,890 26,190 Dividends payable 11,610 9,070 Common stock, $10 par 62,680 49,370...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $234,060 $218,980 Accounts receivable (net) 84,790 78,650 Inventories 239,360 232,860 Investments 0 90,220 Land 122,770 0 Equipment 264,090 205,880 Accumulated depreciation—equipment (61,830) (55,520) Total assets $883,240 $771,070 Liabilities and Stockholders' Equity Accounts payable $159,870 $151,900 Accrued expenses payable 15,900 20,050 Dividends payable 8,830 6,940 Common stock, $10 par 47,690 37,780...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $259,770 $243,600 Accounts receivable (net) 94,110 87,490 Inventories 265,650 259,030 Investments 0 100,360 Land 136,260 0 Equipment 293,100 229,020 Accumulated depreciation—equipment (68,620) (61,760) Total assets $980,270 $857,740 Liabilities and Stockholders' Equity Accounts payable $177,430 $168,970 Accrued expenses payable 17,640 22,300 Dividends payable 9,800 7,720 Common stock, $10 par 52,930 42,030...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $223,980 $207,870 Accounts receivable (net) 81,140 74,660 Inventories 229,040 221,030 Investments 0 85,640 Land 117,480 0 Equipment 252,710 195,430 Accumulated depreciation—equipment (59,160) (52,700) Total assets $845,190 $731,930 Liabilities and Stockholders' Equity Accounts payable $152,980 $144,190 Accrued expenses payable 15,210 19,030 Dividends payable 8,450 6,590 Common stock, $10 par 45,640 35,860...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $311,440 $290,050 Accounts receivable (net) 112,820 104,170 Inventories 318,500 308,430 Investments 0 119,490 Land 163,360 0 Equipment 351,400 272,680 Accumulated depreciation—equipment (82,270) (73,530) Total assets $1,175,250 $1,021,290 Liabilities and Stockholders' Equity Accounts payable $212,720 $201,190 Accrued expenses payable 21,150 26,550 Dividends payable 11,750 9,190 Common stock, $10 par 63,460 50,040...
Statement of Cash Flows—Indirect Method 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, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $257,300 $238,800 Accounts receivable (net) 93,210 85,760 Inventories 263,120 253,930 Investments 0 98,380 Land 134,960 0 Equipment 290,310 224,500 Accumulated depreciation—equipment (67,970) (60,540) Total assets $970,930 $840,830 Liabilities and Stockholders' Equity Accounts payable $175,740 $165,640 Accrued expenses payable 17,480 21,860 Dividends payable 9,710 7,570 Common stock, $10 par 52,430 41,200...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT