Merrick Equipment Co.'s comparative balance sheet as of December 31, 20Y9 and 20Y8 is as follows: December
Question:
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.
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina