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 $230,940 $216,560 Accounts receivable (net) 83,660 77,780 Inventories 236,170 230,280 Investments 0 89,220 Land 121,130 0 Equipment 260,570 203,600 Accumulated depreciation—equipment (61,000) (54,900) Total assets $871,470 $762,540 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $157,740 $150,220 Accrued expenses payable (operating expenses) 15,690 19,830 Dividends payable 8,710 6,860 Common stock, $10 par 47,060 37,360 Paid-in capital in excess of par—common stock 176,910 103,710 Retained earnings 465,360 444,560 Total liabilities and stockholders’ equity $871,470 $762,540 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 $104,390 cash. The common stock was issued for cash. There was a $56,640 credit to Retained Earnings for net income. There was a $35,840 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 $230,940 $216,560 Accounts receivable (net) 83,660 77,780 Inventories 236,170 230,280 Investments 0 89,220 Land 121,130 0 Equipment 260,570 203,600 Accumulated depreciation—equipment (61,000) (54,900) Total assets $871,470 $762,540 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $157,740 $150,220 Accrued expenses payable (operating expenses) 15,690 19,830 Dividends payable 8,710 6,860 Common stock, $10 par 47,060 37,360 Paid-in capital in excess of par—common stock 176,910 103,710 Retained earnings 465,360 444,560 Total liabilities and stockholders’ equity $871,470 $762,540 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 $104,390 cash. The common stock was issued for cash. There was a $56,640 credit to Retained Earnings for net income. There was a $35,840 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
The comparative
Dec. 31, 20Y9 | Dec. 31, 20Y8 | |||
Assets | ||||
Cash | $230,940 | $216,560 | ||
83,660 | 77,780 | |||
Inventories | 236,170 | 230,280 | ||
Investments | 0 | 89,220 | ||
Land | 121,130 | 0 | ||
Equipment | 260,570 | 203,600 | ||
(61,000) | (54,900) | |||
Total assets | $871,470 | $762,540 | ||
Liabilities and |
||||
Accounts payable (merchandise creditors) | $157,740 | $150,220 | ||
Accrued expenses payable (operating expenses) | 15,690 | 19,830 | ||
Dividends payable | 8,710 | 6,860 | ||
Common stock, $10 par | 47,060 | 37,360 | ||
Paid-in capital in excess of par—common stock | 176,910 | 103,710 | ||
465,360 | 444,560 | |||
Total liabilities and stockholders’ equity | $871,470 | $762,540 |
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 $104,390 cash.
- The common stock was issued for cash.
- There was a $56,640 credit to Retained Earnings for net income.
- There was a $35,840 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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