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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.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...
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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.
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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