Statement of cash flows$-$indirect method c$.$ The investments were sold for $$113,850$ cash.

d$.$ The common stock was issued for cash.

e$.$ There was a $$60,630$ credit to Retained Earnings for net income.

f$.$ There was a $$39,090$ 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 $31,20Y9$

Line Item Description

Cash flows from $($used for$)$ operating activities:

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities:

Loss on sale of investments

Changes in current operating assets and liabilities:

Increase in accounts receivable

Increase in inventories

Amount

Increase in accounts payable

Increase in accrued expenses payable

Cash flows from $($used for$)$ investing activities: Net cash flows used for investing activities

Cash flows from $($used for$)$ financing activities:

Cash received from sale of common stock

Cash paid for dividends

Net cash flows from financing activities

Net increase in cash

Cash balance, January $1,20Y9$

Cash balance, December $31,20Y9$

The comparative balance sheet of Merrick Equipment Co$.$ for December $31,20Y9$ and $20$Y$8,$ is as follows:

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

a$.$ Equipment and land were acquired for cash.

b$.$ There were no disposals of equipment during the year.