The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, 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.
C. The investments were sold for $91,800 cash.
D. The common stock was issued for cash.
E. There was a $141,680 credit to Retained Earnings for net income.
F. There was a $102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Transcribed Image Text:

Dec. 31, 20Y9 Dec. 31, 20Y8 Assets S 47,940 188,190 289,850 102,000 207,230 298,520 295,800 438,600 (99.110) 358,020 84,320) $901,680 Liabilities and Stockholders'Equity 30,600 25,500 202,000 354,000 393,960 194,140 26,860 20,400 102,000 204,000 354,280 $901,680 Paid-in cap:Ess of issue price over par-common stock....