13-1b

Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Dec. 31, 2019 Dec. 31, 2048 Assets Cash $70,720 $47,940 Accounts recevable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 0 102,000 Land 295,800 Equipment 438,600 358,020 Accumulated depreciation-equipment (99,110) (84,320) Total assets $1,211,760 $901,680 0 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $205,700 $194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends payable 25,500 20,400 Common stock, $1 par 202,000 102,000 Pald-in capital: Excess of Issue price over par-common stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity $1,211,760 $901,680 Additional data obtained from an examination of the accounts in the ledger for 20y9 are as follows: Retained earnings 393,960 354,280 Total liabilities and stockholders' equity $1,211,760 $901,680 Additional data obtained from an examination of the accounts in the ledger for 2049 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The Investments were sold for 391,800 cash d. The common stock was issued for cash e. There was a $141,680 credit to Retained Earings for net income. There was a $102,000 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 out hows, enth payments, decreases in cash, or any negative adjustments Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 2049 Cash nows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: 1 Il Changes in current operating assets and abilities