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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 $276,220   $257,240   Accounts receivable (net) 100,060   92,390   Inventories 282,470   273,550   Investments 0   105,980   Land 144,890   0   Equipment 311,660   241,850   Accumulated depreciation—equipment (72,960)   (65,220)     Total assets $1,042,340   $905,790         Liabilities and Stockholders' Equity     Accounts payable $188,660   $178,440   Accrued expenses payable 18,760   23,550   Dividends payable 10,420   8,150   Common stock, $10 par 56,290   44,380   Paid-in capital: Excess of issue price over par-common stock 211,600   123,190   Retained earnings 556,610   528,080     Total liabilities and stockholders’ equity $1,042,340   $905,790   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 $95,380 cash. The common stock was issued for cash. There was a $71,100 credit to Retained Earnings for net income. There was a $42,570 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:     Cash from sale of investments  $               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

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 $276,220   $257,240   Accounts receivable (net) 100,060   92,390   Inventories 282,470   273,550   Investments 0   105,980   Land 144,890   0   Equipment 311,660   241,850   Accumulated depreciation—equipment (72,960)   (65,220)     Total assets $1,042,340   $905,790         Liabilities and Stockholders' Equity     Accounts payable $188,660   $178,440   Accrued expenses payable 18,760   23,550   Dividends payable 10,420   8,150   Common stock, $10 par 56,290   44,380   Paid-in capital: Excess of issue price over par-common stock 211,600   123,190   Retained earnings 556,610   528,080     Total liabilities and stockholders’ equity $1,042,340   $905,790   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 $95,380 cash. The common stock was issued for cash. There was a $71,100 credit to Retained Earnings for net income. There was a $42,570 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:     Cash from sale of investments  $               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

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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 $276,220   $257,240  
Accounts receivable (net) 100,060   92,390  
Inventories 282,470   273,550  
Investments 0   105,980  
Land 144,890   0  
Equipment 311,660   241,850  
Accumulated depreciation—equipment (72,960)   (65,220)  
  Total assets $1,042,340   $905,790  
     
Liabilities and Stockholders' Equity    
Accounts payable $188,660   $178,440  
Accrued expenses payable 18,760   23,550  
Dividends payable 10,420   8,150  
Common stock, $10 par 56,290   44,380  
Paid-in capital: Excess of issue price over par-common stock 211,600   123,190  
Retained earnings 556,610   528,080  
  Total liabilities and stockholders’ equity $1,042,340   $905,790  

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

  1. Equipment and land were acquired for cash.
  2. There were no disposals of equipment during the year.
  3. The investments were sold for $95,380 cash.
  4. The common stock was issued for cash.
  5. There was a $71,100 credit to Retained Earnings for net income.
  6. There was a $42,570 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:    
Cash from sale of investments  $  
     
     
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  
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