Statement of Cash Flows-Indirect Method
The comparative balance sheet of Merrick Equipment Co. for December 31, 209 and 20Y8, is as follows:
Assets
Cash
Accounts receivable (net)
Inventories
Investments
Land
Equipment
Accumulated depreciation--equipment
Total assets
Dec. 31, 20Y9 Dec. 31, 20Y8
$70,720
207,230
298,520
0
295,800
$47,940
188,190
289,850
102,000
0
438,600
358,020
(99,110)
$1,211,760
(84,320)
$901,680
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
Accrued expenses payable (operating expenses)
Dividends payable
Common stock, $1 par
Paid-in capital in excess of par- common stock
Retained earnings
$205,700
30,600
25,500
202,000
354,000
393,960
$1,211,760
$194,140
26,860
20,400
102,000
204,000
354,280
$901,680
Total liabilities and stockholders' equity
Additional data obtained from an examination of the accounts in the ledger for 209 are as follows:
- Equipment and land were acquired for cash.
- There were no disposals of equipment during the year.
- The investments were sold for $91,800 cash.
- The common stock was issued for cash.
- There was a $141,680 credit to Retained Earnings for net income.
- There was a $102,000 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 payments, decreases in cash, or any negative adjustments.
