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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, 20Υ9 20Y8 Assets Cash $223,750 $207,660 Accounts receivable (net) 81,060 74,580 Inventories 228,820 220,840 Investments 85,550 Land 117,360 Equipment 252,460 195,230 Accumulated depreciation-equipment (59,100) (52,650) Total assets $844,350 $731,210 Liabilities and Stockholders' Equity Accounts payable $152,830 $144,050 Accrued expenses payable 15,200 19,010 Dividends payable 8,440 6,580 Common stock, $10 par 45,590 35,830 Paid-in capital: Excess of issue price over par-common stock 171,400 99,440 Retained earnings 450,890 426,300 Total liabilities and stockholders' equity $844,350 $731,210 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 $77,000 cash. d. The common stock was issued for cash. e. There was a $58,960 credit to Retained Earnings for net income. f. There was a $34,370 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. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. 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, Dec. 31, 20Υ9 20Y8 Assets Cash $223,750 $207,660 Accounts receivable (net) 81,060 74,580 Inventories 228,820 220,840 Investments 85,550 Land 117,360 Equipment 252,460 195,230 Accumulated depreciation-equipment (59,100) (52,650) Total assets $844,350 $731,210 Liabilities and Stockholders' Equity Accounts payable $152,830 $144,050 Accrued expenses payable 15,200 19,010 Dividends payable 8,440 6,580 Common stock, $10 par 45,590 35,830 Paid-in capital: Excess of issue price over par-common stock 171,400 99,440 Retained earnings 450,890 426,300 Total liabilities and stockholders' equity $844,350 $731,210 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 $77,000 cash. d. The common stock was issued for cash. e. There was a $58,960 credit to Retained Earnings for net income. f. There was a $34,370 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. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. 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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How would I complate the indirect cash flow statement 

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, 20Υ9 20Y8 Assets Cash $223,750 $207,660 Accounts receivable (net) 81,060 74,580 Inventories 228,820 220,840 Investments 85,550 Land 117,360 Equipment 252,460 195,230 Accumulated depreciation-equipment (59,100) (52,650) Total assets $844,350 $731,210 Liabilities and Stockholders' Equity Accounts payable $152,830 $144,050 Accrued expenses payable 15,200 19,010 Dividends payable 8,440 6,580 Common stock, $10 par 45,590 35,830 Paid-in capital: Excess of issue price over par-common stock 171,400 99,440 Retained earnings 450,890 426,300 Total liabilities and stockholders' equity $844,350 $731,210 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 $77,000 cash. d. The common stock was issued for cash. e. There was a $58,960 credit to Retained Earnings for net income. f. There was a $34,370 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, Dec. 31, 20Υ9 20Y8 Assets Cash $223,750 $207,660 Accounts receivable (net) 81,060 74,580 Inventories 228,820 220,840 Investments 85,550 Land 117,360 Equipment 252,460 195,230 Accumulated depreciation-equipment (59,100) (52,650) Total assets $844,350 $731,210 Liabilities and Stockholders' Equity Accounts payable $152,830 $144,050 Accrued expenses payable 15,200 19,010 Dividends payable 8,440 6,580 Common stock, $10 par 45,590 35,830 Paid-in capital: Excess of issue price over par-common stock 171,400 99,440 Retained earnings 450,890 426,300 Total liabilities and stockholders' equity $844,350 $731,210 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 $77,000 cash. d. The common stock was issued for cash. e. There was a $58,960 credit to Retained Earnings for net income. f. There was a $34,370 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. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. 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:Required: 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. 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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