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 $268,370 $252,240 Accounts receivable (net) 97,220 90,590 Inventories 274,450 268,230 Investments 0 103,910 Land 140,770 0 Equipment 302,800 237,140 Accumulated depreciation—equipment (70,890) (63,950) Total assets $1,012,720 $888,160 Liabilities and Stockholders' Equity Accounts payable $183,300 $174,970 Accrued expenses payable 18,230 23,090 Dividends payable 10,130 7,990 Common stock, $10 par 54,690 43,520 Paid-in capital: Excess of issue price over par-common stock 205,580 120,790 Retained earnings 540,790 517,800 Total liabilities and stockholders’ equity $1,012,720 $888,160 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 $93,520 cash. The common stock was issued for cash. There was a $64,730 credit to Retained Earnings for net income. There was a $41,740 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
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 $268,370 $252,240 Accounts receivable (net) 97,220 90,590 Inventories 274,450 268,230 Investments 0 103,910 Land 140,770 0 Equipment 302,800 237,140 Accumulated depreciation—equipment (70,890) (63,950) Total assets $1,012,720 $888,160 Liabilities and Stockholders' Equity Accounts payable $183,300 $174,970 Accrued expenses payable 18,230 23,090 Dividends payable 10,130 7,990 Common stock, $10 par 54,690 43,520 Paid-in capital: Excess of issue price over par-common stock 205,580 120,790 Retained earnings 540,790 517,800 Total liabilities and stockholders’ equity $1,012,720 $888,160 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 $93,520 cash. The common stock was issued for cash. There was a $64,730 credit to Retained Earnings for net income. There was a $41,740 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
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
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 | $268,370 | $252,240 | |||
97,220 | 90,590 | ||||
Inventories | 274,450 | 268,230 | |||
Investments | 0 | 103,910 | |||
Land | 140,770 | 0 | |||
Equipment | 302,800 | 237,140 | |||
(70,890) | (63,950) | ||||
Total assets | $1,012,720 | $888,160 | |||
Liabilities and |
|||||
Accounts payable | $183,300 | $174,970 | |||
Accrued expenses payable | 18,230 | 23,090 | |||
Dividends payable | 10,130 | 7,990 | |||
Common stock, $10 par | 54,690 | 43,520 | |||
Paid-in capital: Excess of issue price over par-common stock | 205,580 | 120,790 | |||
540,790 | 517,800 | ||||
Total liabilities and stockholders’ equity | $1,012,720 | $888,160 |
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 $93,520 cash.
- The common stock was issued for cash.
- There was a $64,730 credit to Retained Earnings for net income.
- There was a $41,740 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
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