The comparative balance sheet of Merrick Equipment Co for December Y and Y is as follows:

Line Item Description December Y December Y

Assets

Cash $ $

Accounts receivable net

Inventories

Investments

Land

Equipment

Accumulated depreciationequipment

Total assets $ $

Liabilities and Stockholders\' Equity

Accounts payable merchandise creditors $ $

Accrued expenses payable operating expenses

Dividends payable

Common stock, $ par

Paidin capital in excess of parcommon stock

Retained earnings

Total liabilities and stockholders\' equity $ $

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

Equipment and land were acquired for cash.

There were no disposals of equipment during the year.

The investments were sold for $ cash.

The common stock was issued for cash.

There was a $ credit to Retained Earnings for net income.

There was a $ debit to Retained Earnings for cash dividends declared.

 

 

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from used for 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 Y

Line Item Description Amount Amount

Cash flows from used for operating activities: blank

Net income

$Net income

Adjustments to reconcile net income to net cash flows from used for operating activities: blank

Depreciation

Depreciation

Select

Changes in current operating assets and liabilities: blank

Increase in accounts receivable

Increase in accounts receivable

Increase in inventories

Increase in inventories

Increase in accrued expenses

Increase in accrued expenses

Select

blank $ Select

Cash flows from used for investing activities: blank

$ Select

Select

Select

blank Select

Cash flows from used for financing activities: blank

$ Select

Select

blank Select

blank $ Select

Cash balance, January Y blank Cash balance, January Y

Cash balance, December Y blank $Cash balance, December Y