Merrick Equipment Co.'s comparative balance sheet as of December 31, 20Y9 and 20Y8 is as follows:

December 31, 20Y9 December 31, 20Y8

Assets

Money $312,190 $289,410

Accounts receivable (net) 113,100 103,940

Inventarios319,260307,750

Inversiones0119,230

Land 163,750 0

Team 352,250 272,080

Accumulated depreciation—equipment (82,470) (73,370)

Total assets $1,178,080 $1,019,040

Liabilities and Equity

Accounts payable $213,230 $200,750

Accrued expenses payable 21,210 26,500

Dividends payable 11,780 9,170

Common shares, $10 par 63,620 49,930

Paid-in capital: Excess of issue price over ordinary shares at par 239,150 138,590

Retained earnings 629,090 594,100

Total liabilities and stockholders' equity $1,178,080 $1,019,040

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

Equipment and land were purchased for cash.

There were no equipment disposals during the year.

The investments were sold for $107,310 in cash.

Common shares were issued in cash.

There was a credit of $82,880 to Retained Earnings for net income.

There was a debit of $47,890 to retained earnings for declared cash dividends.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. 

Answer rating: 100% (QA)

To prepare a statement of cash flows using the indirect method we need to analyze the changes in the balance sheet accounts and additional data provid... View the full answer