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ID: 2594623 • Letter: M

Question

mentmain.doinvoker-assignments&itakeAssignmentSessionLocator-assignment-take;&inprogress; -false roblem eBook 4 Show Me How Calculator Print item 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, Dec. 31, 20YB Assets Cash Accounts receivable (net) Inventori TA $284,410 $267,310 103,030 96,010 290,850 284,250 0110,120 Land Equipment Accumulated depreciation-equipment 149,180 320,900 251,310 75,130 (67,770) Total assets :s,073,240 $94 1,230 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends pavable Common stock, $10 par $194.260185,420 24,470 9,470 57.950 46.120 19,320 24 10,730 to ^@ envasr, 035 PMM

Explanation / Answer

Merrick Equipment Co.

CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31,2019

CASH FLOW FROM OPERATING ACTIVITIES

Net Income

68,610.00

Adjustment For non cash items and working capital changes:

Loss on sale of Investments

11,010.00

Depreciation

7,360.00

Increase in Accounts receivable

-7,020.00

Increase in inventory

-6,600.00

Increase in Accounts payable

8,840.00

Decrease in Accrued Expenses payable

-5,150.00

Increase in Dividend payable

2,260.00

NET CASH FROM OPERATING ACTIVITIES (A)

79,310.00

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of land

-1,49,180.00

Purchase of Equipment

-69,590.00

Sale of investment

99,110.00

NET CASH FROM INVESTING ACTIVITIES (B)

-1,19,660.00

CASH FLOW FROM FINANCING ACTIVITIES

Issue of new shares of common stock

1,01,690.00

Payment of dividend

-44,240.00

NET CASH FROM FINANCING ACTIVITIES (C)

57,450.00

NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C)

17,100.00

ADD: OPENING CASH AND CASH EQUIVALENTS

2,67,310.00

CLOSING CASH AND CASH EQUIVALENTS

2,84,410.00