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 $276,220 $257,240 Accounts receivable (net) 100,060 92,390 Inventories 282,470 273,550 Investments 0 105,980 Land 144,890 0 Equipment 311,660 241,850 Accumulated depreciation—equipment (72,960) (65,220) Total assets $1,042,340 $905,790 Liabilities and Stockholders' Equity Accounts payable $188,660 $178,440 Accrued expenses payable 18,760 23,550 Dividends payable 10,420 8,150 Common stock, $10 par 56,290 44,380 Paid-in capital: Excess of issue price over par-common stock 211,600 123,190 Retained earnings 556,610 528,080 Total liabilities and stockholders’ equity $1,042,340 $905,790 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 $95,380 cash. The common stock was issued for cash. There was a $71,100 credit to Retained Earnings for net income. There was a $42,570 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. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ Cash flows from (used for) investing activities: Cash from sale of investments $ Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities $ Cash at the beginning of the year

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 $276,220 $257,240 Accounts receivable (net) 100,060 92,390 Inventories 282,470 273,550 Investments 0 105,980 Land 144,890 0 Equipment 311,660 241,850 Accumulated depreciation—equipment (72,960) (65,220) Total assets $1,042,340 $905,790 Liabilities and Stockholders' Equity Accounts payable $188,660 $178,440 Accrued expenses payable 18,760 23,550 Dividends payable 10,420 8,150 Common stock, $10 par 56,290 44,380 Paid-in capital: Excess of issue price over par-common stock 211,600 123,190 Retained earnings 556,610 528,080 Total liabilities and stockholders’ equity $1,042,340 $905,790 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 $95,380 cash. The common stock was issued for cash. There was a $71,100 credit to Retained Earnings for net income. There was a $42,570 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. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ Cash flows from (used for) investing activities: Cash from sale of investments $ Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities $ Cash at the beginning of the year

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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Question

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	$276,220		$257,240
Accounts receivable (net)	100,060		92,390
Inventories	282,470		273,550
Investments	0		105,980
Land	144,890		0
Equipment	311,660		241,850
Accumulated depreciation—equipment	(72,960)		(65,220)
	Total assets	$1,042,340		$905,790

Liabilities and Stockholders' Equity
Accounts payable	$188,660		$178,440
Accrued expenses payable	18,760		23,550
Dividends payable	10,420		8,150
Common stock, $10 par	56,290		44,380
Paid-in capital: Excess of issue price over par-common stock	211,600		123,190
Retained earnings	556,610		528,080
	Total liabilities and stockholders’ equity	$1,042,340		$905,790

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 $95,380 cash.
The common stock was issued for cash.
There was a $71,100 credit to Retained Earnings for net income.
There was a $42,570 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.

Merrick Equipment Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y9
Cash flows from operating activities:
	$
Adjustments to reconcile net income to net cash flow from operating activities:


Changes in current operating assets and liabilities:




Net cash flow from operating activities		$
Cash flows from (used for) investing activities:
Cash from sale of investments	$


Net cash flow used for investing activities
Cash flows from (used for) financing activities:


Net cash flow from financing activities
		$
Cash at the beginning of the year

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