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 $226,390 $211,080 Accounts receivable (net) 82,010 75,810 Inventories 231,510 224,450 Investments 0 86,960 Land 118,750 0 Equipment 255,440 198,450 Accumulated depreciation—equipment (59,800) (53,510) Total assets $854,300 $743,240 Liabilities and Stockholders' Equity Accounts payable $154,630 $146,420 Accrued expenses payable 15,380 19,320 Dividends payable 8,540 6,690 Common stock, $10 par 46,130 36,420 Paid-in capital: Excess of issue price over par-common stock 173,420 101,080 Retained earnings 456,200 433,310 Total liabilities and stockholders’ equity $854,300 $743,240 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 $78,260 cash. The common stock was issued for cash. There was a $57,820 credit to Retained Earnings for net income. There was a $34,930 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. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities:
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 $226,390 $211,080 Accounts receivable (net) 82,010 75,810 Inventories 231,510 224,450 Investments 0 86,960 Land 118,750 0 Equipment 255,440 198,450 Accumulated depreciation—equipment (59,800) (53,510) Total assets $854,300 $743,240 Liabilities and Stockholders' Equity Accounts payable $154,630 $146,420 Accrued expenses payable 15,380 19,320 Dividends payable 8,540 6,690 Common stock, $10 par 46,130 36,420 Paid-in capital: Excess of issue price over par-common stock 173,420 101,080 Retained earnings 456,200 433,310 Total liabilities and stockholders’ equity $854,300 $743,240 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 $78,260 cash. The common stock was issued for cash. There was a $57,820 credit to Retained Earnings for net income. There was a $34,930 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. Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities:
Financial And Managerial Accounting
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Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 3PA: Statement of cash flowsindirect method The comparative balance sheet of Whitman Co. at December 31,...
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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 | $226,390 | $211,080 | |||
Accounts receivable (net) | 82,010 | 75,810 | |||
Inventories | 231,510 | 224,450 | |||
Investments | 0 | 86,960 | |||
Land | 118,750 | 0 | |||
Equipment | 255,440 | 198,450 | |||
(59,800) | (53,510) | ||||
Total assets | $854,300 | $743,240 | |||
Liabilities and |
|||||
Accounts payable | $154,630 | $146,420 | |||
Accrued expenses payable | 15,380 | 19,320 | |||
Dividends payable | 8,540 | 6,690 | |||
Common stock, $10 par | 46,130 | 36,420 | |||
Paid-in capital: Excess of issue price over par-common stock | 173,420 | 101,080 | |||
Retained earnings | 456,200 | 433,310 | |||
Total liabilities and stockholders’ equity | $854,300 | $743,240 |
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 $78,260 cash.
- The common stock was issued for cash.
- There was a $57,820 credit to Retained Earnings for net income.
- There was a $34,930 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
Merrick Equipment Co. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 20Y9 | ||
Cash flows from operating activities: | ||
$fill in the blank 2 | ||
Adjustments to reconcile net income to net cash flow from operating activities: | ||
fill in the blank 4 | ||
fill in the blank 6 | ||
Changes in current operating assets and liabilities: | ||
fill in the blank 8 | ||
fill in the blank 10 | ||
fill in the blank 12 | ||
fill in the blank 14 | ||
Net cash flow from operating activities | $fill in the blank 15 | |
Cash flows from (used for) investing activities: | ||
$fill in the blank 17 | ||
fill in the blank 19 | ||
fill in the blank 21 | ||
Net cash flow used for investing activities | fill in the blank 22 | |
Cash flows from (used for) financing activities: | ||
fill in the blank 24 | ||
fill in the blank 26 | ||
Net cash flow from financing activities | fill in the blank 27 | |
$fill in the blank 29 | ||
Cash at the beginning of the year | fill in the blank 30 | |
Cash at the end of the year | $fill in the blank 31 |
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