Question

In: Accounting

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...

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 $263,640 $244,690
Accounts receivable (net) 95,510 87,880
Inventories 269,610 260,190
Investments 0 100,800
Land 138,290 0
Equipment 297,470 230,040
Accumulated depreciation—equipment (69,640) (62,030)
Total assets $994,880 $861,570
Liabilities and Stockholders' Equity
Accounts payable $180,070 $169,730
Accrued expenses payable 17,910 22,400
Dividends payable 9,950 7,750
Common stock, $10 par 53,720 42,220
Paid-in capital: Excess of issue price over par-common stock 201,960 117,170
Retained earnings 531,270 502,300
Total liabilities and stockholders’ equity $994,880 $861,570

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 $90,720 cash.

The common stock was issued for cash.

There was a $69,460 credit to Retained Earnings for net income.

There was a $40,490 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 out flows, cash payments, decreases in cash, or any negative adjustments.

Solutions

Expert Solution

Merrick Equipment
Statement of Cash Flows  
For the year ended December 31, 20Y9
Particulars Amount ($)
OPERATING ACTIVITIES:
Net Income                 69,460
Adjustments to reconcile net income to net cash provided by operations
Depreciation (69,640-62,030)                    7,610
Loss on sale of investments (100,800-90,720)                 10,080
Increase in accounts receivable (87,880-95,510)                 (7,630)
Increase in Inventory (260,190-269,610)                 (9,420)
Increase in Accounts payable (180,070-169,730)                 10,340
Decrease in Accrued expenses payable (17,910-22,400)                 (4,490)
Cash provided from Operating Activities                  75,950
INVESTING ACTIVITIES:
Sale of investments                 90,720
Purchase of land (0-138,290)            (138,290)
Purchase of equipment (230,040-297,470)               (67,430)
Cash used from Investing Activities             (115,000)
FINANCING ACTIVITIES:
Issue of common stock for cash (53,720+201,960-42,220-117,170)                 96,290
Redemption of bonds payable
Payment of cash dividends (40,490+7,750-9,950)               (38,290)
Collection of principal on long term loan
Cash provided from FINANCING ACTIVITIES:                 58,000
Net Increase (decrease) in cash                 18,950
Cash balance at beginning of the year              244,690
Cash balance at end of the year 263,640

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $241,860 $226,540 Accounts receivable (net) 87,620 81,360 Inventories 247,340 240,900 Investments 0 93,330 Land 126,860 0 Equipment 272,890 212,980 Accumulated depreciation—equipment (63,890) (57,430) Total assets $912,680 $797,680 Liabilities and Stockholders' Equity Accounts payable $165,200 $157,140 Accrued expenses payable 16,430 20,740 Dividends payable 9,130 7,180 Common stock, $10 par 49,280 39,090 Paid-in capital: Excess of issue...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $267,860 $251,190 Accounts receivable (net) 97,040 90,210 Inventories 273,940 267,110 Investments 0 103,480 Land 140,500 0 Equipment 302,230 236,150 Accumulated depreciation—equipment (70,760) (63,680) Total assets $1,010,810 $884,460 Liabilities and Stockholders' Equity Accounts payable $182,960 $174,240 Accrued expenses payable 18,190 23,000 Dividends payable 10,110 7,960 Common stock, $10 par 54,580 43,340 Paid-in capital: Excess of issue...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $249,490 $231,820 Accounts receivable (net) 90,380 83,260 Inventories 255,140 246,510 Investments 0 95,500 Land 130,870 0 Equipment 281,500 217,940 Accumulated depreciation—equipment (65,900) (58,770) Total assets $941,480 $816,260 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $170,410 $160,800 Accrued expenses payable (operating expenses) 16,950 21,220 Dividends payable 9,410 7,350 Common stock, $10 par 50,840 40,000 Paid-in...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $239,880 $222,120 Accounts receivable (net) 86,900 79,770 Inventories 245,310 236,190 Investments 0 91,510 Land 125,820 0 Equipment 270,660 208,820 Accumulated depreciation—equipment (63,360) (56,310) Total assets $905,210 $782,100 Liabilities and Stockholders' Equity Accounts payable $163,840 $154,070 Accrued expenses payable 16,290 20,330 Dividends payable 9,050 7,040 Common stock, $10 par 48,880 38,320 Paid-in capital: Excess of issue...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $278,690 $259,850 Accounts receivable (net) 100,960 93,320 Inventories 285,010 276,320 Investments 0 107,050 Land 146,180 0 Equipment 314,450 244,290 Accumulated depreciation—equipment (73,620) (65,880) Total assets $1,051,670 $914,950 Liabilities and Stockholders' Equity Accounts payable $190,350 $180,250 Accrued expenses payable 18,930 23,790 Dividends payable 10,520 8,230 Common stock, $10 par 56,790 44,830 Paid-in capital: Excess of issue...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $306,870 $282,830 Accounts receivable (net) 111,170 101,580 Inventories 313,830 300,760 Investments 0 116,520 Land 160,960 0 Equipment 346,240 265,900 Accumulated depreciation—equipment (81,060) (71,700) Total assets $1,158,010 $995,890 Liabilities and Stockholders' Equity Accounts payable $209,600 $196,190 Accrued expenses payable 20,840 25,890 Dividends payable 11,580 8,960 Common stock, $10 par 62,530 48,800 Paid-in capital: Excess of issue...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $286,470 $266,790 Accounts receivable (net) 103,780 95,820 Inventories 292,960 283,710 Investments 0 109,910 Land 150,260 0 Equipment 323,220 250,820 Accumulated depreciation—equipment (75,670) (67,640) Total assets $1,081,020 $939,410 Liabilities and Stockholders' Equity Accounts payable $195,660 $185,060 Accrued expenses payable 19,460 24,420 Dividends payable 10,810 8,450 Common stock, $10 par 58,380 46,030 Paid-in capital: Excess of issue...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $294,260 $275,940 Accounts receivable (net) 106,600 99,110 Inventories 300,920 293,430 Investments 0 113,680 Land 154,350 0 Equipment 332,020 259,420 Accumulated depreciation—equipment (77,730) (69,960) Total assets $1,110,420 $971,620 Liabilities and Stockholders' Equity Accounts payable $200,990 $191,410 Accrued expenses payable 19,990 25,260 Dividends payable 11,100 8,740 Common stock, $10 par 59,960 47,610 Paid-in capital: Excess of issue...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $70,720 $47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 0 102,000 Land 295,800 0 Equipment 438,600 358,020 Accumulated depreciation—equipment (99,110) (84,320) Total assets $1,211,760 $901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $205,700 $194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends payable 25,500 20,400 Common stock, $1 par 202,000 102,000 Paid-in...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...
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 $231,740 $216,560 Accounts receivable (net) 83,950 77,780 Inventories 236,980 230,290 Investments 0 89,220 Land 121,550 0 Equipment 261,470 203,600 Accumulated depreciation—equipment (61,210) (54,900) Total assets $874,480 $762,550 Liabilities and Stockholders' Equity Accounts payable $158,280 $150,220 Accrued expenses payable 15,740 19,830 Dividends payable 8,740 6,860 Common stock, $10 par 47,220 37,360 Paid-in capital: Excess of issue...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT