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 $259,510   $239,180   Accounts receivable (net) 94,010   85,900   Inventories 265,380   254,340   Investments 0   98,530   Land 136,120   0   Equipment 292,800   224,860   Accumulated depreciation—equipment (68,550)   (60,640)     Total assets $979,270   $842,170         Liabilities and Stockholders' Equity     Accounts payable $177,250   $165,910   Accrued expenses payable 17,630   21,900   Dividends payable 9,790   7,580   Common stock, $10 par 52,880   41,270   Paid-in capital: Excess of issue price over par-common stock 198,790   114,540   Retained earnings 522,930   490,970     Total liabilities and stockholders’ equity $979,270   $842,170   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 $88,680 cash. The common stock was issued for cash. There was a $71,540 credit to Retained Earnings for net income. There was a $39,580 debit to Retained Earnings for cash dividends declared. Required: 1.Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $259,510   $239,180  
Accounts receivable (net) 94,010   85,900  
Inventories 265,380   254,340  
Investments 0   98,530  
Land 136,120   0  
Equipment 292,800   224,860  
Accumulated depreciation—equipment (68,550)   (60,640)  
  Total assets $979,270   $842,170  
     
Liabilities and Stockholders' Equity    
Accounts payable $177,250   $165,910  
Accrued expenses payable 17,630   21,900  
Dividends payable 9,790   7,580  
Common stock, $10 par 52,880   41,270  
Paid-in capital: Excess of issue price over par-common stock 198,790   114,540  
Retained earnings 522,930   490,970  
  Total liabilities and stockholders’ equity $979,270   $842,170  

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 $88,680 cash.
  4. The common stock was issued for cash.
  5. There was a $71,540 credit to Retained Earnings for net income.
  6. There was a $39,580 debit to Retained Earnings for cash dividends declared.

Required:

1.Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

 

 

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