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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets $313,250 $294,080 113,480 105,620 320,350 312,730 121,150 Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment 164,310 353,440 276,480 (82,750) (74,560) $1,182,080 $1,035,500 Total assets Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par-common stock $213,960 $203,990 21,280 26,920 9,320 63,830 50,740 140,830 11,820 239,960 Ch 16-3 Exercises and Problems Retained earnings 631,230603,700 Total liabilities and stockholders' equity $1,182,080 $1,035,500 Additional data obtained from an examination of the accounts in the ledger for 2OYO are as follows: a. Equipment and land were acquired for cash b. There were no disposals of equipment during the year C- The investments were sold for $109,040 cash. d. The common stock was issued for cash e. There was a $76,200 credit to Retained Earnings for net income. f. There was a $48,670 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash fnlows 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, 20Y Cash fows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities Changes in current operating assets and lables Ch 16-3 Exercises and ProblemsBE Merrick Equipment Co Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities Adjustments to reconcile net income to net cash fow from operating activiies Changes in current operating assets and liabilities: Net cash flow from operating activises Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) fnancing activities Previous Net cash fow from operating activiies Cash ows from (used for) investing activities: Net cash low 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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