Statement of Cash Flows—Indirect Method
The comparative balance sheet of Merrick Equipment Co. forDecember 31, 20Y9 and 20Y8, is as follows:
| Dec. 31, 20Y9 | Dec. 31, 20Y8 |
| Assets | | |
| Cash | $236,660 | | $218,630 | |
| Accounts receivable (net) | 85,730 | | 78,520 | |
| Inventories | 242,020 | | 232,490 | |
| Investments | 0 | | 90,070 | |
| Land | 124,140 | | 0 | |
| Equipment | 267,020 | | 205,540 | |
| Accumulated depreciation—equipment | (62,510) | | (55,430) | |
| Total assets | $893,060 | | $769,820 | |
| | |
| Liabilities and Stockholders'Equity | | |
| Accounts payable | $161,640 | | $151,650 | |
| Accrued expenses payable | 16,080 | | 20,020 | |
| Dividends payable | 8,930 | | 6,930 | |
| Common stock, $10 par | 48,230 | | 37,720 | |
| Paid-in capital: Excess of issue price overpar-common stock | 181,290 | | 104,700 | |
| Retained earnings | 476,890 | | 448,800 | |
| Total liabilities and stockholders’ equity | $893,060 | | $769,820 | |
Additional data obtained from an examination of the accounts inthe 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 $81,060 cash.
- The common stock was issued for cash.
- There was a $64,270 credit to Retained Earnings for netincome.
- There was a $36,180 debit to Retained Earnings for cashdividends declared.
Required:
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash outflows, cash payments, decreases in cash, or anynegative adjustments.
