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 | $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 price over par-common stock | 183,760 | 106,370 | |||
Retained earnings | 483,390 | 455,970 | |||
Total liabilities and stockholders’ equity | $905,210 | $782,100 |
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.
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