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 $271,620 $255,000 Accounts receivable (net) 98,400 91,580 Inventories 277,770 271,170 Investments 0 105,050 Land 142,470 0 Equipment 306,470 239,730 Accumulated depreciation—equipment (71,750) (64,650) Total assets $1,024,980 $897,880 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $185,520 $176,880 Accrued expenses payable (operating expenses) 18,450 23,340 Dividends payable 10,250 8,080 Common stock, $10 par 55,350 44,000 Paid-in capital in excess of par—common stock 208,070 122,110 Retained earnings 547,340 523,470 Total liabilities and stockholders’ equity $1,024,980 $897,880 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 $122,910 cash. The common stock was issued for cash. There was a $66,070 credit to Retained Earnings for net income. There was a $42,200 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 (used for) operating activities: $fill in the blank 2 Adjustments to reconcile net income to net cash flow from operating activities: fill in the blank 4 fill in the blank 6 Changes in current operating assets and liabilities: fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 Net cash flow from operating activities $fill in the blank 15 Cash flows from (used for) investing activities: $fill in the blank 17 fill in the blank 19 fill in the blank 21 Net cash flow used for investing activities fill in the blank 22 Cash flows from (used for) financing activities: $fill in the blank 24 fill in the blank 26 Net cash flow from financing activities fill in the blank 27 $fill in the blank 29 Cash balance, January 1, 20Y9 fill in the blank 30 Cash balance, December 31, 20Y9 $fill in the blank 31
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 $271,620 $255,000 Accounts receivable (net) 98,400 91,580 Inventories 277,770 271,170 Investments 0 105,050 Land 142,470 0 Equipment 306,470 239,730 Accumulated depreciation—equipment (71,750) (64,650) Total assets $1,024,980 $897,880 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $185,520 $176,880 Accrued expenses payable (operating expenses) 18,450 23,340 Dividends payable 10,250 8,080 Common stock, $10 par 55,350 44,000 Paid-in capital in excess of par—common stock 208,070 122,110 Retained earnings 547,340 523,470 Total liabilities and stockholders’ equity $1,024,980 $897,880 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 $122,910 cash. The common stock was issued for cash. There was a $66,070 credit to Retained Earnings for net income. There was a $42,200 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 (used for) operating activities: $fill in the blank 2 Adjustments to reconcile net income to net cash flow from operating activities: fill in the blank 4 fill in the blank 6 Changes in current operating assets and liabilities: fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 Net cash flow from operating activities $fill in the blank 15 Cash flows from (used for) investing activities: $fill in the blank 17 fill in the blank 19 fill in the blank 21 Net cash flow used for investing activities fill in the blank 22 Cash flows from (used for) financing activities: $fill in the blank 24 fill in the blank 26 Net cash flow from financing activities fill in the blank 27 $fill in the blank 29 Cash balance, January 1, 20Y9 fill in the blank 30 Cash balance, December 31, 20Y9 $fill in the blank 31
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 3PA
Related questions
Question
Statement of
The comparative
Dec. 31, 20Y9 | Dec. 31, 20Y8 | |||
Assets | ||||
Cash | $271,620 | $255,000 | ||
98,400 | 91,580 | |||
Inventories | 277,770 | 271,170 | ||
Investments | 0 | 105,050 | ||
Land | 142,470 | 0 | ||
Equipment | 306,470 | 239,730 | ||
(71,750) | (64,650) | |||
Total assets | $1,024,980 | $897,880 | ||
Liabilities and |
||||
Accounts payable (merchandise creditors) | $185,520 | $176,880 | ||
Accrued expenses payable (operating expenses) | 18,450 | 23,340 | ||
Dividends payable | 10,250 | 8,080 | ||
Common stock, $10 par | 55,350 | 44,000 | ||
Paid-in capital in excess of par—common stock | 208,070 | 122,110 | ||
547,340 | 523,470 | |||
Total liabilities and stockholders’ equity | $1,024,980 | $897,880 |
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 $122,910 cash.
- The common stock was issued for cash.
- There was a $66,070 credit to Retained Earnings for net income.
- There was a $42,200 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
Merrick Equipment Co. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 20Y9 | ||
Cash flows from (used for) operating activities: | ||
$fill in the blank 2 | ||
Adjustments to reconcile net income to net cash flow from operating activities: | ||
fill in the blank 4 | ||
fill in the blank 6 | ||
Changes in current operating assets and liabilities: | ||
fill in the blank 8 | ||
fill in the blank 10 | ||
fill in the blank 12 | ||
fill in the blank 14 | ||
Net cash flow from operating activities | $fill in the blank 15 | |
Cash flows from (used for) investing activities: | ||
$fill in the blank 17 | ||
fill in the blank 19 | ||
fill in the blank 21 | ||
Net cash flow used for investing activities | fill in the blank 22 | |
Cash flows from (used for) financing activities: | ||
$fill in the blank 24 | ||
fill in the blank 26 | ||
Net cash flow from financing activities | fill in the blank 27 | |
$fill in the blank 29 | ||
Cash balance, January 1, 20Y9 | fill in the blank 30 | |
Cash balance, December 31, 20Y9 | $fill in the blank 31 |
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