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 $272,800 $256,400 Accounts receivable (net) 98,830 92,090 Inventories 278,980 272,650 Investments 105,630 Land 143,090 Equipment 307,810 241,060 Accumulated depreciation-equipment (72,060) $1,029,450 (65,000) $902,830 Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $186,330 $177,860 Accrued expenses payable (operating expenses) 18,530 23,470 Dividends payable 10,290 8,130 Common stock, $10 par 55,590 44,240 Paid-in capital in excess of par-common stock 208,980 122,780 Retained earnings 549,730 526,350 $902,830 Total liabilities and stockholders' equity $1,029,450 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 $123,590 cash. d. The common stock was issued for cash. e. There was a $65,810 credit to Retained Earnings for net income. f. There was a $42,430 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.
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 $272,800 $256,400 Accounts receivable (net) 98,830 92,090 Inventories 278,980 272,650 Investments 105,630 Land 143,090 Equipment 307,810 241,060 Accumulated depreciation-equipment (72,060) $1,029,450 (65,000) $902,830 Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $186,330 $177,860 Accrued expenses payable (operating expenses) 18,530 23,470 Dividends payable 10,290 8,130 Common stock, $10 par 55,590 44,240 Paid-in capital in excess of par-common stock 208,980 122,780 Retained earnings 549,730 526,350 $902,830 Total liabilities and stockholders' equity $1,029,450 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 $123,590 cash. d. The common stock was issued for cash. e. There was a $65,810 credit to Retained Earnings for net income. f. There was a $42,430 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.
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, 20Y9 and 20Y8, is as follows:
Dec. 31, 20Y9 Dec. 31, 20Y8
Assets
Cash
$272,800
$256,400
Accounts receivable (net)
98,830
92,090
Inventories
278,980
272,650
Investments
105,630
Land
143,090
Equipment
307,810
241,060
Accumulated depreciation-equipment
(72,060)
$1,029,450
(65,000)
$902,830
Total assets
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
$186,330
$177,860
Accrued expenses payable (operating expenses)
18,530
23,470
Dividends payable
10,290
8,130
Common stock, $10 par
55,590
44,240
Paid-in capital in excess of par-common stock
208,980
122,780
Retained earnings
549,730
526,350
$902,830
Total liabilities and stockholders' equity
$1,029,450
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 $123,590 cash.
d. The common stock was issued for cash.
e. There was a $65,810 credit to Retained Earnings for net income.
f. There was a $42,430 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.
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