Statement of Cash Flows-Indirect MethodThe comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 208, is as follows:Dec. 31, 20Y9 Dec. 31, 20Y8AssetsbourCash$245,780$227,580Accounts receivable (net)89,040wolt es to81,740Inventories251,340241,990woll eInvestments93,760Land128,920rlanEquipmentAccumulated depreciation-equipment277,310213,960wa vot bi ste(64,920)(57,700)Total assets$927,470$801,330sot blo dasLiabilities and Stockholders' Equity29divitos onuasvnt dee teAccounts payable (merchandise creditors)Accrued expenses payable (operating expenses)$167,870$157,86016,69020,830Dividends payable9,270p7,210Common stock, $10 par50,08039,270Paid-in capital in excess of par-common stock188,280108,980ebnabivib o bls edRetained earnings495,280467,180Total liabilities and stockholders' equity$927,470$801,330vibs paoneril mont wot eo foAdditional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: ia. Equipment and land were acquired for cash.b. There were no disposals of equipment during the year.c. The investments were sold for $109,700 cash.evas eunstonalsd need. The common stock was issued for cash.eYos 18 19dmsoodansled tese. There was a $65,760 credit to Retained Earnings for net income.f. There was a $37,660 debit to Retained Earnings for cash dividends declared.Required:Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Usethe minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Merrick Equipment Co.Statement of Cash FlowsFor the Year Ended December 31, 20Y9Cash flows from (used for) operating activities:$Net incomeAdjustments to reconcile net income to net cash flow from operating activities:DepreciationLoss on sale of investmentsChanges in current operating assets and liabilities:attps://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false CengageNOIncrease in accounts receivableIncrease in inventoriesIncrease in accounts pavable ndBYOS E d eYos ,tEaIncrease in accrued expenses payableNet cash flow from operating activities 1824(t0) sidevisogOP0.88Cash flows from (used for) investing activities:3se0Cash received from loss on sale of investments%$4airCash paid for purchase of landInsmglups-noltsbangab be(ed'aso)082Cash paid for purchase of equipmentNet cash flow used for investing activitiesylupa 'aneblordalboie bne aai(210tibono salibnisoern) sldsyCash flows from (used for) financing activities:OE8,0SCash received from sale of common stock(29enagx9 pnits1sqo) eldsyeq asens$4sldsy080,02Cash paid for dividends08e,801088,881bota normmo-16g to 2290x9 ni08S,22Net cash flow from financing activitiesVaiupe 2sblorlbot2 bns6 PYOS 10l 1opbal s ni etnuop6 ard to nojenimaxs n mor baniesdoNet increase in cash.r26 1ot baniupos e19w bnsl bru169Y si pniub insmqiups to alszogaib o.deso 00,e012 1 bioz s1sw anCash balance, January 1, 20Y9Cash balance, December 31, 20Y9smoɔni jan 10t epnims3 benisisA of Jibs15-0a5,2abstsloob abnsbivib rlass 1ot epriims3 benis o idab 03a,tePDETOO mol 2won des onns2ng lo bordtem Jbanont enz pnieu,wol raso to ireewoli de60 lo trometsieeYos e 1odms20 bebn 15SY sd 1oe00 mont wolt deso to o omooni ton sbn

Statement of cash flow is one of the most important financial statements which is prepared to record…

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Does the statement of cash flows report only transactions that cause an increase or a decrease in cash? Explain.
Help with part "a" please!
Select the item that matches with the description. Descriptions a. Begins with net income and then lists adjustments to net income in order to arrive at operating cash flows. b. Item included in net income, but excluded from net operating cash flows. c. Net cash flows from operating activities divided by average total assets. d. Cash transactions involving lenders and investors. e. Cash transactions involving net income. f. Cash transactions for the purchase and sale of long-term assets. g. Purchase of long-term assets by issuing stock to seller. h. Shows the cash inflows and outflows from operations such as cash received from customers and cash paid for inventory, salaries, rent, interest, and taxes. Terms
Which of the following is the final step in preparing a spreadsheet (work sheet) for the statement of cash flows using the indirect method? Add the Debit and Credit Transactions columns and verify that the totals are equal. Analyze all noncash accounts and enter the net increase (decrease) in cash during the period. Add the Balance column totals, which should total to zero. After all noncash accounts have been analyzed, enter the net increase (decrease) in cash during the period.
State the section(s) of the statement of cash flows prepared by the indirect method (operating activities, investing activities, financing activities, or not reported) and the amount that would be reported for each of the following transactions: Note: Only consider the cash component of each transaction. Use the minus sign to indicate amounts that are cash out flows, cash payments, decreases in cash, or any negative adjustments. If your answer is not reported in an amount box does not require an entry, leave it blank or enter "0". a. Received $120,000 from the sale of land costing $70,000. Investing activities $fill in the blank 2 Operating activities $fill in the blank 4 b. Purchased investments for $75,000. Investing activities $fill in the blank 6 c. Declared $35,000 cash dividends on stock. $5,000 dividends were payable at the beginning of the year, and $6,000 were payable at the end of the year. Financing activities $fill in the blank 8 d. Acquired equipment for…
abels and Amount Descriptions Instructions Labels Dec. 31, Dec. 31, December 31, 20Y3 20Y3 20Y2 For the Year Ended December 31, 20Y3 Amount Descriptions Assets 3 Cash $625,680.00 $586,230.00 Cash received from sale of investments 228,100.00 208,850.00 4 Accounts receivable (net) 5 Inventories Cash paid for purchase of land Cash paid for purchase of equipment Cash received from issuing common 640,910.00 617,650.00 0.00 240,620.00 6 Investments 7 Land 328,090.00 0,00 stock 704,540.00 553,320.00 8 Equipment 9 Accumulated depreciation-equipment Cash dividends (166,310.00) (147840.00) Decrease in accounts payable Decreașe in accounts receivable Decrease in accrued expenses payable 10 Total assets $2,361,010.00 $2,058,830.00 11 Liabilities and Stockholders' Equity $425,280.00 $404,550.00 52,020.00 12 Accounts payable Decrease in inventories 41,990.00 13 Accrued expenses payable Depreciation 24,190.00 20,170.00 14 Dividends payablie Gain on sale of investments 15 Common stock, $4 par…