Accounting

/in /by
Assets
Cash $261,180 $246,040
Accounts receivable (net) 94,620 88,370
Inventories 267,100 261,640
Investments 0 101,360
Land 137,000 0
Equipment 294,690 231,310
Accumulated depreciation—equipment (68,990) (62,380)
Total assets $985,600 $866,340
Liabilities and Stockholders’ Equity
Accounts payable (merchandise creditors) $178,390 $170,670
Accrued expenses payable (operating expenses) 17,740 22,520
Dividends payable 9,860 7,800
Common stock, $10 par 53,220 42,450
Paid-in capital in excess of par—common stock 200,080 117,820
Retained earnings 526,310 505,080
Total liabilities and stockholders’ equity $985,600 $866,340

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

  1. Equipment and land were acquired for cash.
  2. There were no disposals of equipment during the year.
  3. The investments were sold for $118,590 cash.
  4. The common stock was issued for cash.
  5. There was a $61,950 credit to Retained Earnings for net income.
  6. There was a $40,720 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 (used for) 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:
$
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
$
Net cash flow from financing activities
$
Cash balance, January 1, 20Y9
Cash balance, December 31, 20Y9