Chapter 16 5B

Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities OBJ. 3 PR 16-5B Statement of cash flows-direct method applied to PR 16-1B v Net cash flow from operating activities $154,260 The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2016 and 2015, is: Dec. 31, 2016 Dec.31, 2015 Assets Cash Accounts receivable (net) Inventories Investments Land $ 70,720 207,230 298,520 47,940 188,190 289,850 102,000 . 295,800 438,600 (99,110) $1,211,760 2 358,020 (84,320) s 901,680 Accumulated depreciation-equipment Total assets .. Liabilities and Stockholders Equity 205,700 30,600 25,500 202,000 354,000 393,960 $1,211,760 Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable.. $ 194,140 26,860 20,400 102,000 204,000 354,280 $ 901,680 Paid-in capital: Excess of issue price over par-common stock Retained earnings. Continued)