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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 price over par-common stock 235,080 135,440
Retained earnings 618,380 580,610
Total liabilities and stockholders’ equity $1,158,010 $995,890

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 $104,870 cash.
  4. The common stock was issued for cash.
  5. There was a $84,580 credit to Retained Earnings for net income.
  6. There was a $46,810 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.

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:
Accumulated depreciation
Loss on sale of investments
Changes in current operating assets and liabilities:
Increase in accounts receivable
Increase in inventories
Increase in accrued expenses
Increase in accrued expenses payable
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 $

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Expert Solution

ekkarill92 answered 1 year ago
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