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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $265,310 $249,640 Accounts receivable (net) 96,110 89,660 265,460 Inventories 271,310 Investments 102,850 Land 139,160 0 299,350 Equipment 234,700 Accumulated depreciation-equipment (70,080) (63,290) $1,001,160 $879,020 Total assets Liabilities and Stockholders' Equity Accounts payable $181,210 $173,170 Accrued expenses payable 18,020 22,850 Dividends payable 10,010 7,910 Common stock, $10 par 54,060 43,070 Paid-in capital: Excess of issue price over par-common stock 203,240 119,550 Retained earnings 534,620 512,470 Total liabilities and stockholders' equity $1,001,160 $879,020 Additional data obtained from an examination of the accounts in the ledger for 20Y9 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 $92,570 cash d. The common stock was issued for cash. e. There was a $63,460 credit to Retained Earnings for net income. f. There was a $41,310 debit to Retained Earnings for cash dividends declared. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year $

Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $265,310 $249,640 Accounts receivable (net) 96,110 89,660 265,460 Inventories 271,310 Investments 102,850 Land 139,160 0 299,350 Equipment 234,700 Accumulated depreciation-equipment (70,080) (63,290) $1,001,160 $879,020 Total assets Liabilities and Stockholders' Equity Accounts payable $181,210 $173,170 Accrued expenses payable 18,020 22,850 Dividends payable 10,010 7,910 Common stock, $10 par 54,060 43,070 Paid-in capital: Excess of issue price over par-common stock 203,240 119,550 Retained earnings 534,620 512,470 Total liabilities and stockholders' equity $1,001,160 $879,020 Additional data obtained from an examination of the accounts in the ledger for 20Y9 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 $92,570 cash d. The common stock was issued for cash. e. There was a $63,460 credit to Retained Earnings for net income. f. There was a $41,310 debit to Retained Earnings for cash dividends declared. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year $

FINANCIAL ACCOUNTING
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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Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $265,310 $249,640 Accounts receivable (net) 96,110 89,660 265,460 Inventories 271,310 Investments 102,850 Land 139,160 0 299,350 Equipment 234,700 Accumulated depreciation-equipment (70,080) (63,290) $1,001,160 $879,020 Total assets Liabilities and Stockholders' Equity Accounts payable $181,210 $173,170 Accrued expenses payable 18,020 22,850 Dividends payable 10,010 7,910 Common stock, $10 par 54,060 43,070 Paid-in capital: Excess of issue price over par-common stock 203,240 119,550 Retained earnings 534,620 512,470 Total liabilities and stockholders' equity $1,001,160 $879,020 Additional data obtained from an examination of the accounts in the ledger for 20Y9 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 $92,570 cash d. The common stock was issued for cash. e. There was a $63,460 credit to Retained Earnings for net income. f. There was a $41,310 debit to Retained Earnings for cash dividends declared.
Transcribed Image Text:Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $265,310 $249,640 Accounts receivable (net) 96,110 89,660 265,460 Inventories 271,310 Investments 102,850 Land 139,160 0 299,350 Equipment 234,700 Accumulated depreciation-equipment (70,080) (63,290) $1,001,160 $879,020 Total assets Liabilities and Stockholders' Equity Accounts payable $181,210 $173,170 Accrued expenses payable 18,020 22,850 Dividends payable 10,010 7,910 Common stock, $10 par 54,060 43,070 Paid-in capital: Excess of issue price over par-common stock 203,240 119,550 Retained earnings 534,620 512,470 Total liabilities and stockholders' equity $1,001,160 $879,020 Additional data obtained from an examination of the accounts in the ledger for 20Y9 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 $92,570 cash d. The common stock was issued for cash. e. There was a $63,460 credit to Retained Earnings for net income. f. There was a $41,310 debit to Retained Earnings for cash dividends declared.
Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year $
Transcribed Image Text:Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year $
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