The comparative balance sheet of Merrick Equipment Co for December and Y is as follows:
Additional data obtained from an examination of the accounts in the ledger for 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 $ cash.
d The common stock was issued for cash.
e There was a $ credit to Retained Earnings for net income.
f There was a $ debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from used for 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
Line Item Description
Amount Amount
Cash flows from used for operating activities:
Adjustments to reconcile net income to net cash flows from used for operating
activities:
I
Changes in current operating assets and liabilities:
s
Cash flows from used for financing activities:
Cash balance, January
Cash balance, December
