Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $303,530 $282,030 Accounts receivable (net) 109,960 101,290 Inventories 310,400 299,900 Investments 0 116,190 Land 159,210 0 Equipment 342,470 265,140 Accumulated depreciation—equipment (80,180) (71,500) Total assets $1,145,390 $993,050 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $207,320 $195,630 Accrued expenses payable (operating expenses) 20,620 25,820 Dividends payable 11,450 8,940 Common stock, $10 par 61,850 48,660 Paid-in capital in excess of par—common stock 232,510 135,050 Retained earnings 611,640 578,950 Total liabilities and stockholders’ equity $1,145,390 $993,050 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $135,940 cash. The common stock was issued for cash. There was a $79,360 credit to Retained Earnings for net income. There was a $46,670 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 outflows, cash payments, decreases in cash, or any negative adjustments.
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $303,530 $282,030 Accounts receivable (net) 109,960 101,290 Inventories 310,400 299,900 Investments 0 116,190 Land 159,210 0 Equipment 342,470 265,140 Accumulated depreciation—equipment (80,180) (71,500) Total assets $1,145,390 $993,050 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $207,320 $195,630 Accrued expenses payable (operating expenses) 20,620 25,820 Dividends payable 11,450 8,940 Common stock, $10 par 61,850 48,660 Paid-in capital in excess of par—common stock 232,510 135,050 Retained earnings 611,640 578,950 Total liabilities and stockholders’ equity $1,145,390 $993,050 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $135,940 cash. The common stock was issued for cash. There was a $79,360 credit to Retained Earnings for net income. There was a $46,670 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 outflows, cash payments, decreases in cash, or any negative adjustments.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 21E
Related questions
Question
Statement of Cash Flows—Indirect Method
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:
Dec. 31, 20Y9 | Dec. 31, 20Y8 | |||
Assets | ||||
Cash | $303,530 | $282,030 | ||
Accounts receivable (net) | 109,960 | 101,290 | ||
Inventories | 310,400 | 299,900 | ||
Investments | 0 | 116,190 | ||
Land | 159,210 | 0 | ||
Equipment | 342,470 | 265,140 | ||
(80,180) | (71,500) | |||
Total assets | $1,145,390 | $993,050 | ||
Liabilities and |
||||
Accounts payable (merchandise creditors) | $207,320 | $195,630 | ||
Accrued expenses payable (operating expenses) | 20,620 | 25,820 | ||
Dividends payable | 11,450 | 8,940 | ||
Common stock, $10 par | 61,850 | 48,660 | ||
Paid-in capital in excess of par—common stock | 232,510 | 135,050 | ||
Retained earnings | 611,640 | 578,950 | ||
Total liabilities and stockholders’ equity | $1,145,390 | $993,050 |
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
- Equipment and land were acquired for cash.
- There were no disposals of equipment during the year.
- The investments were sold for $135,940 cash.
- The common stock was issued for cash.
- There was a $79,360 credit to Retained Earnings for net income.
- There was a $46,670 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
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