In: Accounting
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 price over par-common stock | 213,490 | 124,430 | |||
Retained earnings | 561,590 | 533,420 | |||
Total liabilities and stockholders’ equity | $1,051,670 | $914,950 |
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 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 operating activities: | ||
Net income | $ | |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Cash paid for land | ||
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 at the beginning of the year | ||
Cash at the end of the year | $ |