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 $269,540 $251,600 Accounts receivable (net) 97,640 90,360 Inventories 275,640 267,550 Investments 0 103,650 Land 141,380 0 Equipment 304,120 236,540 Accumulated depreciation—equipment (71,200) (63,790) Total assets $1,017,120 $885,910 Liabilities and Stockholders' Equity Accounts payable $184,100 $174,520 Accrued expenses payable 18,310 23,030 Dividends payable 10,170 7,970 Common stock, $10 par 54,920 43,410 Excess of paid-in capital over par 206,480 120,480 Retained earnings 543,140 516,500 Total liabilities and stockholders' equity $1,017,120 $885,910 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 $93,290 cash. The common stock was issued for cash. There was a $68,280 credit to Retained Earnings for net income. There was a $41,640 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. Merrick Equipment Co.Statement of Cash FlowsFor the Year Ended December 31, 20Y9 Cash flows from (used for) operating activities: blank Cash dividendsCash paid for landCash received from issuing common stockCash received from sale of investmentsNet incomeNet income $Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank Cash dividendsCash paid for landCash received from issuing common stockDepreciationRetained earnings - Select - Cash received from net incomeCash received from the sale of common stockGain on sale of investmentsLoss on sale of investmentsRetained earnings - Select - Changes in current operating assets and liabilities: blank Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in accounts receivableLoss on sale of investmentsDecrease in inventories Decrease in inventories Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesGain on sale of investmentsIncrease in inventoriesDecrease in accounts payable Decrease in accounts payable Decrease in accounts payableDecrease in accounts receivableDecrease in accrued expensesDecrease in inventoriesIncrease in accounts payableDecrease in accounts payable Decrease in accounts payable Decrease in accounts payableDecrease in accrued expenses payableDecrease in dividends payableDepreciationIncrease in accrued expenses payableDecrease in accrued expenses payable Decrease in accrued expenses payable Net cash flows from operating activities blank $fill in the blank 15 Cash flows from (used for) investing activities: blank Cash received from gain on sale of investmentsCash received from issuing common stockCash received from loss on sale of investmentsCash received from sale of investmentsCash received from retained earningsCash received from loss on sale of investments $Cash received from loss on sale of investments Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for purchase of landCash paid for accumulated depreciation Cash paid for accumulated depreciation Cash paid for accounts receivableCash paid for accrued expensesCash paid for accumulated depreciationCash paid for inventoriesCash paid for purchase of equipment - Select - Net cash flows used for investing activities blank fill in the blank 22 Cash flows from (used for) financing activities: blank Cash received from issuing common stockCash received from net incomeCash received from sale of equipmentCash received from sale of inventoriesCash received from sale of investmentsCash received from sale of equipment $Cash received from sale of equipment Cash dividendsCash paid for inventoriesCash paid for purchase of equipmentCash paid for purchase of investmentsCash paid for purchase of landCash paid for purchase of investments Cash paid for purchase of investments Net cash flows from financing activities blank fill in the blank 27 Net decrease in cashNet increase in cash blank $- Select - Cash balance, January 1, 20Y9 blank fill in the blank 30 Cash balance, December 31, 20Y9

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 $269,540 $251,600 Accounts receivable (net) 97,640 90,360 Inventories 275,640 267,550 Investments 0 103,650 Land 141,380 0 Equipment 304,120 236,540 Accumulated depreciation—equipment (71,200) (63,790) Total assets $1,017,120 $885,910 Liabilities and Stockholders' Equity Accounts payable $184,100 $174,520 Accrued expenses payable 18,310 23,030 Dividends payable 10,170 7,970 Common stock, $10 par 54,920 43,410 Excess of paid-in capital over par 206,480 120,480 Retained earnings 543,140 516,500 Total liabilities and stockholders' equity $1,017,120 $885,910 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 $93,290 cash. The common stock was issued for cash. There was a $68,280 credit to Retained Earnings for net income. There was a $41,640 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. Merrick Equipment Co.Statement of Cash FlowsFor the Year Ended December 31, 20Y9 Cash flows from (used for) operating activities: blank Cash dividendsCash paid for landCash received from issuing common stockCash received from sale of investmentsNet incomeNet income $Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank Cash dividendsCash paid for landCash received from issuing common stockDepreciationRetained earnings - Select - Cash received from net incomeCash received from the sale of common stockGain on sale of investmentsLoss on sale of investmentsRetained earnings - Select - Changes in current operating assets and liabilities: blank Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in accounts receivableLoss on sale of investmentsDecrease in inventories Decrease in inventories Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesGain on sale of investmentsIncrease in inventoriesDecrease in accounts payable Decrease in accounts payable Decrease in accounts payableDecrease in accounts receivableDecrease in accrued expensesDecrease in inventoriesIncrease in accounts payableDecrease in accounts payable Decrease in accounts payable Decrease in accounts payableDecrease in accrued expenses payableDecrease in dividends payableDepreciationIncrease in accrued expenses payableDecrease in accrued expenses payable Decrease in accrued expenses payable Net cash flows from operating activities blank $fill in the blank 15 Cash flows from (used for) investing activities: blank Cash received from gain on sale of investmentsCash received from issuing common stockCash received from loss on sale of investmentsCash received from sale of investmentsCash received from retained earningsCash received from loss on sale of investments $Cash received from loss on sale of investments Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for purchase of landCash paid for accumulated depreciation Cash paid for accumulated depreciation Cash paid for accounts receivableCash paid for accrued expensesCash paid for accumulated depreciationCash paid for inventoriesCash paid for purchase of equipment - Select - Net cash flows used for investing activities blank fill in the blank 22 Cash flows from (used for) financing activities: blank Cash received from issuing common stockCash received from net incomeCash received from sale of equipmentCash received from sale of inventoriesCash received from sale of investmentsCash received from sale of equipment $Cash received from sale of equipment Cash dividendsCash paid for inventoriesCash paid for purchase of equipmentCash paid for purchase of investmentsCash paid for purchase of landCash paid for purchase of investments Cash paid for purchase of investments Net cash flows from financing activities blank fill in the blank 27 Net decrease in cashNet increase in cash blank $- Select - Cash balance, January 1, 20Y9 blank fill in the blank 30 Cash balance, December 31, 20Y9

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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	$269,540	$251,600
Accounts receivable (net)	97,640	90,360
Inventories	275,640	267,550
Investments	0	103,650
Land	141,380	0
Equipment	304,120	236,540
Accumulated depreciation—equipment	(71,200)	(63,790)
Total assets	$1,017,120	$885,910

Liabilities and Stockholders' Equity
Accounts payable	$184,100	$174,520
Accrued expenses payable	18,310	23,030
Dividends payable	10,170	7,970
Common stock, $10 par	54,920	43,410
Excess of paid-in capital over par	206,480	120,480
Retained earnings	543,140	516,500
Total liabilities and stockholders' equity	$1,017,120	$885,910

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 $93,290 cash.

The common stock was issued for cash.

There was a $68,280 credit to Retained Earnings for net income.

There was a $41,640 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.

Merrick Equipment Co.Statement of Cash FlowsFor the Year Ended December 31, 20Y9

Cash flows from (used for) operating activities:	blank
Cash dividendsCash paid for landCash received from issuing common stockCash received from sale of investmentsNet incomeNet income	$Net income
Adjustments to reconcile net income to net cash flows from (used for) operating activities:	blank
Cash dividendsCash paid for landCash received from issuing common stockDepreciationRetained earnings	- Select -
Cash received from net incomeCash received from the sale of common stockGain on sale of investmentsLoss on sale of investmentsRetained earnings	- Select -
Changes in current operating assets and liabilities:	blank
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesIncrease in accounts receivableLoss on sale of investmentsDecrease in inventories	Decrease in inventories
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesGain on sale of investmentsIncrease in inventoriesDecrease in accounts payable	Decrease in accounts payable
Decrease in accounts payableDecrease in accounts receivableDecrease in accrued expensesDecrease in inventoriesIncrease in accounts payableDecrease in accounts payable	Decrease in accounts payable
Decrease in accounts payableDecrease in accrued expenses payableDecrease in dividends payableDepreciationIncrease in accrued expenses payableDecrease in accrued expenses payable	Decrease in accrued expenses payable
Net cash flows from operating activities	blank	$fill in the blank 15
Cash flows from (used for) investing activities:	blank
Cash received from gain on sale of investmentsCash received from issuing common stockCash received from loss on sale of investmentsCash received from sale of investmentsCash received from retained earningsCash received from loss on sale of investments	$Cash received from loss on sale of investments
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for purchase of landCash paid for accumulated depreciation	Cash paid for accumulated depreciation
Cash paid for accounts receivableCash paid for accrued expensesCash paid for accumulated depreciationCash paid for inventoriesCash paid for purchase of equipment	- Select -
Net cash flows used for investing activities	blank	fill in the blank 22
Cash flows from (used for) financing activities:	blank
Cash received from issuing common stockCash received from net incomeCash received from sale of equipmentCash received from sale of inventoriesCash received from sale of investmentsCash received from sale of equipment	$Cash received from sale of equipment
Cash dividendsCash paid for inventoriesCash paid for purchase of equipmentCash paid for purchase of investmentsCash paid for purchase of landCash paid for purchase of investments	Cash paid for purchase of investments
Net cash flows from financing activities	blank	fill in the blank 27
Net decrease in cashNet increase in cash	blank	$- Select -
Cash balance, January 1, 20Y9	blank	fill in the blank 30
Cash balance, December 31, 20Y9

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