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 $268,370   $252,240   Accounts receivable (net) 97,220   90,590   Inventories 274,450   268,230   Investments 0   103,910   Land 140,770   0   Equipment 302,800   237,140   Accumulated depreciation—equipment (70,890)   (63,950)     Total assets $1,012,720   $888,160         Liabilities and Stockholders' Equity     Accounts payable $183,300   $174,970   Accrued expenses payable 18,230   23,090   Dividends payable 10,130   7,990   Common stock, $10 par 54,690   43,520   Paid-in capital: Excess of issue price over par-common stock 205,580   120,790   Retained earnings 540,790   517,800     Total liabilities and stockholders’ equity $1,012,720   $888,160   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 $93,520 cash. The common stock was issued for cash. There was a $64,730 credit to Retained Earnings for net income. There was a $41,740 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:       $fill in the blank 2   Adjustments to reconcile net income to net cash flow from operating activities:     Retained earnings  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:     Cash received from gain on sale of investments  $fill in the blank 17   Cash used for purchase of land  fill in the blank 19   Cash used for purchase of equipment  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   Cash used for purchase of land  fill in the blank 26   Net cash flow from financing activities   fill in the blank 27     $fill in the blank 29 Cash at the beginning of the year

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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $268,370   $252,240  
Accounts receivable (net) 97,220   90,590  
Inventories 274,450   268,230  
Investments 0   103,910  
Land 140,770   0  
Equipment 302,800   237,140  
Accumulated depreciation—equipment (70,890)   (63,950)  
  Total assets $1,012,720   $888,160  
     
Liabilities and Stockholders' Equity    
Accounts payable $183,300   $174,970  
Accrued expenses payable 18,230   23,090  
Dividends payable 10,130   7,990  
Common stock, $10 par 54,690   43,520  
Paid-in capital: Excess of issue price over par-common stock 205,580   120,790  
Retained earnings 540,790   517,800  
  Total liabilities and stockholders’ equity $1,012,720   $888,160  

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 $93,520 cash.
  4. The common stock was issued for cash.
  5. There was a $64,730 credit to Retained Earnings for net income.
  6. There was a $41,740 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:    
  $fill in the blank 2  
Adjustments to reconcile net income to net cash flow from operating activities:    
Retained earnings  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:    
Cash received from gain on sale of investments  $fill in the blank 17  
Cash used for purchase of land  fill in the blank 19  
Cash used for purchase of equipment  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  
Cash used for purchase of land  fill in the blank 26  
Net cash flow from financing activities   fill in the blank 27
    $fill in the blank 29
Cash at the beginning of the year   fill in the blank 30
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to
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:
$4
Adjustments to reconcile net income to net cash flow from operating activities:
Retained earnings
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Cash flows from (used for) investing activities:
ESPA 3102 LJS 42:10
Cash received from gain on sale of investments
Cash used for purchase of land
Cash used for purchase of equipment
Check My Work 2 more Check My Work uses remaining.
312
1
14
MAY
W
T
10
3D
%24
%24
%24
Transcribed Image Text:Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to 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: $4 Adjustments to reconcile net income to net cash flow from operating activities: Retained earnings Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: ESPA 3102 LJS 42:10 Cash received from gain on sale of investments Cash used for purchase of land Cash used for purchase of equipment Check My Work 2 more Check My Work uses remaining. 312 1 14 MAY W T 10 3D %24 %24 %24
еВook
Show Me How
Thanges Tn current operating assets andniabimties:N
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Cash received from gain on sale of investments
Cash used for purchase of land
Cash used for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash used for purchase of land
Net cash flow from financing activities
ESPA 3102 LJS 42:12
Cash at the beginning of the year
Cash at the end of the year
Check My Work 2 more Check My Work uses remaining.
14
312
MAY
W
T
10
%24
%24
%24
000
%24
Transcribed Image Text:еВook Show Me How Thanges Tn current operating assets andniabimties:N Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from gain on sale of investments Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash used for purchase of land Net cash flow from financing activities ESPA 3102 LJS 42:12 Cash at the beginning of the year Cash at the end of the year Check My Work 2 more Check My Work uses remaining. 14 312 MAY W T 10 %24 %24 %24 000 %24
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