Statement of Cash Flows—Indirect Method 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 $294,210 $276,210 Accounts receivable (net) 106,580 99,200 Inventories 300,890 293,720 Investments 0 113,790 Land 154,320 0 Equipment 331,960 259,680 Accumulated depreciation—equipment (77,720) (70,030) Total asset
Statement of Cash Flows—Indirect Method 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 $294,210 $276,210 Accounts receivable (net) 106,580 99,200 Inventories 300,890 293,720 Investments 0 113,790 Land 154,320 0 Equipment 331,960 259,680 Accumulated depreciation—equipment (77,720) (70,030) Total asset
Financial And Managerial Accounting
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Chapter13: Statement Of Cash Flows
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Problem 3PA: Statement of cash flowsindirect method The comparative balance sheet of Whitman Co. at December 31,...
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Statement of Cash Flows—Indirect Method
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 | $294,210 | $276,210 | ||
106,580 | 99,200 | |||
Inventories | 300,890 | 293,720 | ||
Investments | 0 | 113,790 | ||
Land | 154,320 | 0 | ||
Equipment | 331,960 | 259,680 | ||
(77,720) | (70,030) | |||
Total assets | $1,110,240 | $972,570 | ||
Liabilities and |
||||
Accounts payable (merchandise creditors) | $200,950 | $191,600 | ||
Accrued expenses payable (operating expenses) | 19,980 | 25,290 | ||
Dividends payable | 11,100 | 8,750 | ||
Common stock, $10 par | 59,950 | 47,660 | ||
Paid-in capital in excess of par—common stock | 225,380 | 132,270 | ||
592,880 | 567,000 | |||
Total liabilities and stockholders’ equity | $1,110,240 | $972,570 |
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 $133,130 cash.
- The common stock was issued for cash.
- There was a $71,590 credit to Retained Earnings for net income.
- There was a $45,710 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
Merrick Equipment Co. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 20Y9 | ||
Cash flows from (used for) operating activities: | ||
Net income | $fill in the blank 2 | |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Depreciation | fill in the blank 4 | |
Gain on sale of investments | fill in the blank 6 | |
Changes in current operating assets and liabilities: | ||
Increase in accounts receivable | fill in the blank 8 | |
Increase in inventories | fill in the blank 10 | |
Increase in accounts payable | fill in the blank 12 | |
Decrease in accrued expenses payable | fill in the blank 14 | |
Net cash flow from operating activities | $fill in the blank 15 | |
Cash flows from (used for) investing activities: | ||
Cash received from sale of investments | $fill in the blank 17 | |
Cash paid for purchase of land | fill in the blank 19 | |
Cash paid for purchase of equipment | fill in the blank 21 | |
Net cash flow used for investing activities | fill in the blank 22 | |
Cash flows from (used for) financing activities: | ||
Cash received from sale of common stock | $fill in the blank 24 | |
Cash paid for dividends | fill in the blank 26 | |
Net cash flow from financing activities | fill in the blank 27 | |
$fill in the blank 29 | ||
Cash balance, January 1, 20Y9 | fill in the blank 30 | |
Cash balance, December 31, 20Y9 | $fill in the blank 31 |
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