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 $305,220 $282,620 Accounts receivable (net) 110,570 101,500 Inventories 312,130 300,540 Investments 0 116,430 Land 160,100 0 Equipment 344,380 265,700 Accumulated depreciation—equipment (80,620) (71,650) Total assets $1,151,780 $995,140 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $208,470 $196,040 Accrued expenses payable (operating expenses) 20,730 25,870 Dividends payable 11,520 8,960 Common stock, $10 par 62,200 48,760 Paid-in capital in excess of par—common stock 233,810 135,340 Retained earnings 615,050 580,170 Total liabilities and stockholders’ equity $1,151,780 $995,140 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 $136,220 cash. The common stock was issued for cash. There was a $81,650 credit to Retained Earnings for net income. There was a $46,770 debit to Retained Earnings for cash dividends declared.
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 $305,220 $282,620 Accounts receivable (net) 110,570 101,500 Inventories 312,130 300,540 Investments 0 116,430 Land 160,100 0 Equipment 344,380 265,700 Accumulated depreciation—equipment (80,620) (71,650) Total assets $1,151,780 $995,140 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $208,470 $196,040 Accrued expenses payable (operating expenses) 20,730 25,870 Dividends payable 11,520 8,960 Common stock, $10 par 62,200 48,760 Paid-in capital in excess of par—common stock 233,810 135,340 Retained earnings 615,050 580,170 Total liabilities and stockholders’ equity $1,151,780 $995,140 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 $136,220 cash. The common stock was issued for cash. There was a $81,650 credit to Retained Earnings for net income. There was a $46,770 debit to Retained Earnings for cash dividends declared.
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
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 | $305,220 | $282,620 | ||
Accounts receivable (net) | 110,570 | 101,500 | ||
Inventories | 312,130 | 300,540 | ||
Investments | 0 | 116,430 | ||
Land | 160,100 | 0 | ||
Equipment | 344,380 | 265,700 | ||
(80,620) | (71,650) | |||
Total assets | $1,151,780 | $995,140 | ||
Liabilities and |
||||
Accounts payable (merchandise creditors) | $208,470 | $196,040 | ||
Accrued expenses payable (operating expenses) | 20,730 | 25,870 | ||
Dividends payable | 11,520 | 8,960 | ||
Common stock, $10 par | 62,200 | 48,760 | ||
Paid-in capital in excess of par—common stock | 233,810 | 135,340 | ||
615,050 | 580,170 | |||
Total liabilities and stockholders’ equity | $1,151,780 | $995,140 |
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 $136,220 cash.
- The common stock was issued for cash.
- There was a $81,650 credit to Retained Earnings for net income.
- There was a $46,770 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 FlowsFor the Year Ended December 31, 20Y9
Cash flows from (used for) operating activities: | blank | |
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Adjustments to reconcile net income to net cash flow from operating activities: | blank | |
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Changes in current operating assets and liabilities: | blank | |
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Net cash flow from operating activities | blank | $fill in the blank 15 |
Cash flows from (used for) investing activities: | blank | |
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$- Select - | |
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Net cash flow used for investing activities | blank | fill in the blank 22 |
Cash flows from (used for) financing activities: | blank | |
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$- Select - | |
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Net cash flow from financing activities | blank | fill in the blank 27 |
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blank | $- Select - |
Cash balance, January 1, 20Y9 | blank | fill in the blank 30 |
Cash balance, December 31, 20Y9 | blank | $fill in the blank 31 |
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