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The comparative balance sheet of Merrick Equipment Co, for December 31,20 . 9 and 20 Y8, is as follows: Additional data obtained rrom an examinatn or the accounts in tre ieqger ror cuty are as rouow5: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $102,000 cash. d. The common stock was issued for cash. e. There was a $62,210 credit to Retained Earnings for net income. f. There was a $35,020 debit to Retained Earnings for cash dividends declared. HW 10 (CH 13) 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 outfows, cash payments, decreases in cash, or any negative adjustments. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Line Item Description Amount Amount Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: \begin{tabular}{lr} Increase in accounts receivable & 6,980 \\ \hline Increase in inventories & .9,220 \\ \hline Increase in accounts payable & 9,670 \\ \hline Decrease in accrued expenses payable & 3,810 \\ \hline \end{tabular} Net cash flows from operating activities $4,910 Cash flows from (used for) investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flows from investing activities Cash flows from (used for) financing activities: Cash received from retained earnings Cash paid for dividends Net cash flows from financing activities Cash balance, January 1, 20Y9 Cash balance, December 31,20Y9

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