Show Me How Cauat Statement of Cash FlowsIndirect Method The

Show Me How Cauat Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as Dec. 31, Dec. 31, Assets 230,990 $213,390 83,680 76,640 236,220 226,910 0 87,910 Accounts receivable (net) 121,160 260,630 200,620 (61,020) (54,100) 871,660 $751,370 Accumulated depreciation-equipment Total assets Liabilities and Stockholders Equity Accounts payable Accrued expenses payable Dlividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $157,770 $148,020 19,540 8,720 6,760 47,07036,820 176,950 102,190 465,460 438,040 871,660 $751,370 15,6001 Total liabilities and stockholders equity 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 $79,120 cash d. The common stock was issued for cash. e. There was a $62,730 credit to Retained Earnings for net income. f. There was a $35,310 debit to Retained Earnings for cash dividends declared 5 more Check My e to search ip

Solution

Cash flow statement :

10250

Cash flow from Operating Activities:
Net Income	$62730
add: depreciation	6920
add: loss on sale of investments	8790
less: Increase in AR	-7040
Less: Increase in Investory	-9310
add: increase in AP	9750
less: decrease in Acc. Exp. Payable	-3850
add: increase in Dividend payment	1960
Cash inflow from the operating activities=	69950
Cash flow from the Investing Activities :
Add: Sale of Investment	79120
less: Purchase of land	-121160
less: purchase of equipment	-60010
Cash outflow from the investing activities=	-102050
Cash flow from the financing activities :
add issuance of CS	10250
add: increase of Paid in capital	74760
less: dividend paid	-35310
Cash inflow from the financing activities =	49700
Total cash inflow from all activities	17600
Add: Opening cash balance	213390
Closing Cash balance =	$230990