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, Dec. 31, 20Y9 20Υ8 Assets Cash $275,930 $255,490 Accounts receivable (net) 99,960 91,760 Inventories 282,170 271,680 Investments 105,260 Land 144,730 Equipment 311,330 240,200 Accumulated depreciation-equipment (72,890) (64,770) Total assets $1,041,230 $899,620 Liabilities and Stockholders' Equity Accounts payable $188,460 $177,230 Accrued expenses payable 18,740 23,390 Dividends payable 10,410 8,100 Common stock, $10 par 56,230 44,080 Paid-in capital: Excess of issue price over par-common stock 211,370 122,350 Retained earnings 556,020 524,470 Total liabilities and stockholders' equity $1,041,230 $899,620 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 $94,730 cash. d. The common stock was issued for cash. e. There was a $73,830 credit to Retained Earnings for net income. f. There was a $42,280 debit to Retained Earnings for cash dividends declared.
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, Dec. 31, 20Y9 20Υ8 Assets Cash $275,930 $255,490 Accounts receivable (net) 99,960 91,760 Inventories 282,170 271,680 Investments 105,260 Land 144,730 Equipment 311,330 240,200 Accumulated depreciation-equipment (72,890) (64,770) Total assets $1,041,230 $899,620 Liabilities and Stockholders' Equity Accounts payable $188,460 $177,230 Accrued expenses payable 18,740 23,390 Dividends payable 10,410 8,100 Common stock, $10 par 56,230 44,080 Paid-in capital: Excess of issue price over par-common stock 211,370 122,350 Retained earnings 556,020 524,470 Total liabilities and stockholders' equity $1,041,230 $899,620 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 $94,730 cash. d. The common stock was issued for cash. e. There was a $73,830 credit to Retained Earnings for net income. f. There was a $42,280 debit to Retained Earnings for cash dividends declared.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 3PA: Statement of cash flowsindirect method The comparative balance sheet of Whitman Co. at December 31,...
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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,
Dec. 31,
20Y9
20Υ8
Assets
Cash
$275,930
$255,490
Accounts receivable (net)
99,960
91,760
Inventories
282,170
271,680
Investments
105,260
Land
144,730
Equipment
311,330
240,200
Accumulated depreciation-equipment
(72,890)
(64,770)
Total assets
$1,041,230
$899,620
Liabilities and Stockholders' Equity
Accounts payable
$188,460
$177,230
Accrued expenses payable
18,740
23,390
Dividends payable
10,410
8,100
Common stock, $10 par
56,230
44,080
Paid-in capital: Excess of issue price over par-common stock
211,370
122,350
Retained earnings
556,020
524,470
Total liabilities and stockholders' equity
$1,041,230
$899,620
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 $94,730 cash.
d. The common stock was issued for cash.
e. There was a $73,830 credit to Retained Earnings for net income.
f. There was a $42,280 debit to Retained Earnings for cash dividends declared.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3ab2835-e63c-462d-897e-c9721400fd30%2F3d5fae5c-6abf-437f-bf67-f57daa64bd44%2Flf4xrzn.png&w=3840&q=75)
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,
Dec. 31,
20Y9
20Υ8
Assets
Cash
$275,930
$255,490
Accounts receivable (net)
99,960
91,760
Inventories
282,170
271,680
Investments
105,260
Land
144,730
Equipment
311,330
240,200
Accumulated depreciation-equipment
(72,890)
(64,770)
Total assets
$1,041,230
$899,620
Liabilities and Stockholders' Equity
Accounts payable
$188,460
$177,230
Accrued expenses payable
18,740
23,390
Dividends payable
10,410
8,100
Common stock, $10 par
56,230
44,080
Paid-in capital: Excess of issue price over par-common stock
211,370
122,350
Retained earnings
556,020
524,470
Total liabilities and stockholders' equity
$1,041,230
$899,620
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 $94,730 cash.
d. The common stock was issued for cash.
e. There was a $73,830 credit to Retained Earnings for net income.
f. There was a $42,280 debit to Retained Earnings for cash dividends declared.
![](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3ab2835-e63c-462d-897e-c9721400fd30%2F3d5fae5c-6abf-437f-bf67-f57daa64bd44%2Fq9l4iqd.png&w=3840&q=75)
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