The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets $ 70,720 $ 47,940 Cash Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 102,000 Investments Land 295 800 Equipment. 438,600 358,020 (84,320) $901,680 Accumulated depreciation-equipment (99,110) $1211,760 Totalassets Llabilitles and Stockholders' Equity Accounts payable Accrued expenses payable. Dividends payable.. Common stock, $1 par.. $ 205,700 $194,140 30,600 26,860 25,500 20,400 102,000 202,000 Paid-in capital: Excess of issue price over par-common stock... Retained earnings..... Total liabilities and stockholders'equity.. 354,000 204,000 393,960 $1211,760 354,280 $901,680 The income statement for the year ended December 31, 20Y9, is as follows: Sales $2,023,898 Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses 1,245,476 $ 778,422 $ 14,790 517,299 Total operating expenses. Operating income. Other expenses: 532,089 $ 246,333 Loss on sale of investments (10,200) $ 236,133 Income before income tax Income tax expense Net income.. 94,453 $ 141,680 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 $91,800 cash. d. The common stock was issued for cash. e. There was a $102,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets $ 70,720 $ 47,940 Cash Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 102,000 Investments Land 295 800 Equipment. 438,600 358,020 (84,320) $901,680 Accumulated depreciation-equipment (99,110) $1211,760 Totalassets Llabilitles and Stockholders' Equity Accounts payable Accrued expenses payable. Dividends payable.. Common stock, $1 par.. $ 205,700 $194,140 30,600 26,860 25,500 20,400 102,000 202,000 Paid-in capital: Excess of issue price over par-common stock... Retained earnings..... Total liabilities and stockholders'equity.. 354,000 204,000 393,960 $1211,760 354,280 $901,680 The income statement for the year ended December 31, 20Y9, is as follows: Sales $2,023,898 Cost of merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses 1,245,476 $ 778,422 $ 14,790 517,299 Total operating expenses. Operating income. Other expenses: 532,089 $ 246,333 Loss on sale of investments (10,200) $ 236,133 Income before income tax Income tax expense Net income.. 94,453 $ 141,680 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 $91,800 cash. d. The common stock was issued for cash. e. There was a $102,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8,
is as follows:
Dec. 31, 20Y9
Dec. 31, 20Y8
Assets
$ 70,720
$ 47,940
Cash
Accounts receivable (net)
207,230
188,190
Inventories
298,520
289,850
102,000
Investments
Land
295 800
Equipment.
438,600
358,020
(84,320)
$901,680
Accumulated depreciation-equipment
(99,110)
$1211,760
Totalassets
Llabilitles and Stockholders' Equity
Accounts payable
Accrued expenses payable.
Dividends payable..
Common stock, $1 par..
$ 205,700
$194,140
30,600
26,860
25,500
20,400
102,000
202,000
Paid-in capital: Excess of issue price over par-common stock...
Retained earnings.....
Total liabilities and stockholders'equity..
354,000
204,000
393,960
$1211,760
354,280
$901,680
The income statement for the year ended December 31, 20Y9, is as follows:
Sales
$2,023,898
Cost of merchandise sold
Gross profit
Operating expenses:
Depreciation expense
Other operating expenses
1,245,476
$ 778,422
$ 14,790
517,299
Total operating expenses.
Operating income.
Other expenses:
532,089
$ 246,333
Loss on sale of investments
(10,200)
$ 236,133
Income before income tax
Income tax expense
Net income..
94,453
$ 141,680
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 $91,800 cash.
d. The common stock was issued for cash.
e. There was a $102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows from
operating activities.
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