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 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:

Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The investments were sold for $82,360 cash.
The common stock was issued for cash.
There was a $64,180 credit to Retained Earnings for net income.
There was a $36,760 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.

Solutions

Expert Solution

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ekkarill92 answered 1 year ago

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