The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2018, is as follows: Cash Accounts receivable (net) Inventories Investments Land Equipment Assets Accumulated depreciation-equipment Total assets Dec. 31, 20Y9 Dec. 31, 20Y8 $250,550 $232,260 90,770 83,420 256,210 246,980 0 95,690 131,420 0 282,700 218,360 (66,180) (58,880) $945,470 $817,830 Liabilities and Stockholders' Equity Accounts payable $171,130 $161,110 Accrued expenses payable 17,020 21,260 Dividends payable 9,450 7,360 Common stock, $10 par 51,060 40,070 Excess of paid-in capital over par 191,930 111,220 Retained earnings 504,880 476,810 Total liabilities and stockholders' equity $945,470 $817,830 Additional data obtained from an examination of the accounts in the ledger for 2019 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 $86,120 cash. d. The common stock was issued for cash. e. There was a $66,510 credit to Retained Earnings for net income. f. There was a $38,440 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 2018, is as follows: Cash Accounts receivable (net) Inventories Investments Land Equipment Assets Accumulated depreciation-equipment Total assets Dec. 31, 20Y9 Dec. 31, 20Y8 $250,550 $232,260 90,770 83,420 256,210 246,980 0 95,690 131,420 0 282,700 218,360 (66,180) (58,880) $945,470 $817,830 Liabilities and Stockholders' Equity Accounts payable $171,130 $161,110 Accrued expenses payable 17,020 21,260 Dividends payable 9,450 7,360 Common stock, $10 par 51,060 40,070 Excess of paid-in capital over par 191,930 111,220 Retained earnings 504,880 476,810 Total liabilities and stockholders' equity $945,470 $817,830 Additional data obtained from an examination of the accounts in the ledger for 2019 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 $86,120 cash. d. The common stock was issued for cash. e. There was a $66,510 credit to Retained Earnings for net income. f. There was a $38,440 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
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 December 31, 2019 and 2018, is as follows:
Cash
Accounts receivable (net)
Inventories
Investments
Land
Equipment
Assets
Accumulated depreciation-equipment
Total assets
Dec. 31,
20Y9
Dec. 31,
20Y8
$250,550
$232,260
90,770
83,420
256,210
246,980
0
95,690
131,420
0
282,700
218,360
(66,180)
(58,880)
$945,470
$817,830
Liabilities and Stockholders' Equity
Accounts payable
$171,130
$161,110
Accrued expenses payable
17,020
21,260
Dividends payable
9,450
7,360
Common stock, $10 par
51,060
40,070
Excess of paid-in capital over par
191,930
111,220
Retained earnings
504,880
476,810
Total liabilities and stockholders' equity
$945,470
$817,830
Additional data obtained from an examination of the accounts in the ledger for 2019 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 $86,120 cash.
d. The common stock was issued for cash.
e. There was a $66,510 credit to Retained Earnings for net income.
f. There was a $38,440 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
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