Question Content Area Statement of cash flows—indirect method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Line Item Description December 31, 20Y9 December 31, 20Y8 Assets Cash $317,320 $298,240 Accounts receivable (net) 114,950 107,120 Inventories 324,520 317,140 Investments 0 122,870 Land 166,440 0 Equipment 358,030 280,390 Accumulated depreciation—equipment (83,820) (75,610) Total assets $1,197,440 $1,050,150 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $216,740 $206,880 Accrued expenses payable (operating expenses) 21,550 27,300 Dividends payable 11,970 9,450 Common stock, $10 par 64,660 51,460 Paid-in capital in excess of par—common stock 243,080 142,820 Retained earnings 639,440 612,240 Total liabilities and stockholders' equity $1,197,440 $1,050,150 Additional data obtained from an examination of the accounts in the 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 $143,760 cash. The common stock was issued for cash. There was a $76,560 credit to Retained Earnings for net income. There was a $49,360 debit to Retained Earnings for cash dividends declared.
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