Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

Question

Question

Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

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		$270,460	$249,560
Accounts receivable (net)		97,980	89,630
Inventories		276,580	265,390
Investments		0	102,810
Land		141,860	0
Equipment		305,160	234,620
Accumulated depreciation—equipment		(71,440)	(63,270)
	Total assets	$1,020,600	$878,740

Liabilities and Stockholders' Equity
Accounts payable		$184,730	$173,110
Accrued expenses payable		18,370	22,850
Dividends payable		10,210	7,910
Common stock, $10 par		55,110	43,060
Paid-in capital: Excess of issue price over par-common stock		207,180	119,510
Retained earnings		545,000	512,300
	Total liabilities and stockholders’ equity	$1,020,600	$878,740

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 $92,530 cash.
The common stock was issued for cash.
There was a $74,000 credit to Retained Earnings for net income.
There was a $41,300 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:

---------------------------------- $------------

Adjustments to reconcile net income to net cash flow from operating activities:

---------------------------------- -------------

Changes in current operating assets and liabilities:

---------------------------------- -------------

Net cash flow from operating activities $--------------

Cash flows from (used for) investing activities:

---------------------------------- $------------

---------------------------------- -------------

Net cash flow from investing activities ------------

Cash flows from (used for) financing activities:

---------------------------------- $------------

---------------------------------- -------------

Net cash flow from financing activities -------------

========

---------------------------------- $------------

Cash at the beginning of the year -------------

Cash at the end of the year -------------

=======

__________________________________________________________________________________________________________________________________________

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

SOLUTION

Statement of cash flows-

Particulars	Amount ($)	Amount ($)
Cash flows from operating activities
Net income		74,000
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation (71,440-63,270)	8,170
Loss on sale of investments (102,810-92,530)	10,280
Changes in current operating assets and liabilities:
Increase in accounts receivable (97,980-89,630)	(8,350)
Increase in inventory (276,580-265,390)	(11,190)
Increase in Accounts payable (184,730-173,110)	11,620
Decrease in Accrued expenses payable (22,850-18,370)	(4,480)	6,050
Net cash flow from operating activities (A)		80,050
Cash flows from (used for) investing activities
Cash received from sale of investments	92,530
Cash paid for purchase of Land	(141,860)
Cash paid for purchase of Equipment (305,160-234,620)	(70,540)
Net cash used in investing activities (B)		(119,870)
Cash flows from (used for) financing activities
Cash received from sale of common stock	99,720
Less: Cash paid for dividends (41,300+7,910-10,210)	(39,000)
Net cash flow from financing activities (C)		60,720
Net increase in cash (A+B+C)		20,900
Cash at the beginning of the year		249,560
Cash at the end of the year		270,460

Add a comment

Answer 2

Similar Homework Help Questions

Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

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 $265,010 $248,220 Accounts receivable (net) 96,000 89,150 Inventories 271,010 263,960 Investments 0 102,260 Land 139,000 0 Equipment 299,010 233,370 Accumulated depreciation—equipment (70,000) (62,930) Total assets $1,000,030 $874,030 Liabilities and Stockholders' Equity Accounts payable $181,010 $172,180 Accrued expenses payable 18,000 22,720 Dividends payable 10,000 7,870 Common stock, $10 par 54,000 42,830...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

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 $228,590 $214,360 Accounts receivable (net) 82,810 76,990 Inventories 233,780 227,940 Investments 0 88,310 Land 119,900 0 Equipment 257,920 201,530 Accumulated depreciation—equipment (60,380) (54,340) Total assets $862,620 $754,790 Liabilities and Stockholders' Equity Accounts payable $156,130 $148,690 Accrued expenses payable 15,530 19,620 Dividends payable 8,630 6,790 Common stock, $10 par 46,580 36,980...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

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 $269,720 $253,210 Accounts receivable (net) 97,710 90,940 Inventories 275,830 269,260 Investments 0 104,320 Land 141,470 0 Equipment 304,320 238,050 Accumulated depreciation—equipment (71,250) (64,190) Total assets $1,017,800 $891,590 Liabilities and Stockholders' Equity Accounts payable $184,220 $175,640 Accrued expenses payable 18,320 23,180 Dividends payable 10,180 8,020 Common stock, $10 par 54,960 43,690...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

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 $229,710 $214,170 Accounts receivable (net) 83,210 76,920 Inventories 234,910 227,760 Investments 0 88,230 Land 120,490 0 Equipment 259,180 201,350 Accumulated depreciation—equipment (60,680) (54,300) Total assets $866,820 $754,130 Liabilities and Stockholders' Equity Accounts payable $156,890 $148,560 Accrued expenses payable 15,600 19,610 Dividends payable 8,670 6,790 Common stock, $10 par 46,810 36,950...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

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 $277,310 $257,670 Accounts receivable (net) 100,460 92,540 Inventories 283,590 274,000 Investments 0 106,150 Land 145,460 0 Equipment 312,890 242,240 Accumulated depreciation—equipment (73,250) (65,320) Total assets $1,046,460 $907,280 Liabilities and Stockholders' Equity Accounts payable $189,410 $178,730 Accrued expenses payable 18,840 23,590 Dividends payable 10,460 8,170 Common stock, $10 par 56,510 44,460...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

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 $223,540 $209,380 Accounts receivable (net) 80,980 75,200 Inventories 228,620 222,660 Investments 0 86,260 Land 117,250 0 Equipment 252,220 196,850 Accumulated depreciation—equipment (59,050) (53,080) Total assets $843,560 $737,270 Liabilities and Stockholders' Equity Accounts payable $152,680 $145,240 Accrued expenses payable 15,180 19,170 Dividends payable 8,440 6,640 Common stock, $10 par 45,550 36,130...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

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 $223,890 $208,270 Accounts receivable (net) 81,110 74,800 Inventories 228,950 221,480 Investments 0 85,800 Land 117,440 0 Equipment 252,620 195,800 Accumulated depreciation—equipment (59,140) (52,800) Total assets $844,870 $733,350 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $152,920 $144,470 Accrued expenses payable (operating expenses) 15,210 19,070 Dividends payable 8,450 6,600 Common stock,...
Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2019 and 20Y8, is as follows: Dec. 31, 2019 Dec. 31, 2018 ssets Cash Accounts receivable (net) Inventories Investments Land $251,460 91,090 257,150 $233,110 83,720 247,890 96,030 131,900 283,720 Equipment Accumulated deſreciation equipment Total assets (66,420) $948,900 219,150 (59,100) $820,800 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $171,750 $161,700 Accrued expenses payable (operating expenses) 17,080 21,340 Dividends payable 9,490 7,390 Common stock, $10...
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as...

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 $275,320 $256,110 Accounts receivable (net) 99,740 91,980 Inventories 281,550 272,340 Investments 0 105,510 Land 144,410 0 Equipment 310,640 240,780 Accumulated depreciation—equipment (72,730) (64,930) Total assets $1,038,930 $901,790 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $188,050 $177,650 Accrued expenses payable (operating expenses) 18,700 23,450 Dividends payable 10,390 8,120 Common stock, $10 par 56,100 44,190 Paid-in...

Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

Statement of Cash Flows-Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31, 2049 and 20Y8, is as follows: Dec. 31, 2049 Dec. 31, 2048 Assets Cash $227,500 Accounts receivable (net) $242,880 87,990 248,370 81,710 Inventories 241,900 93,720 Investments Land 127,400 Equipment 274,040 (64,160) 213,880 (57,670) Accumulated depreciation-equipment Total assets $916,520 $801,040 Liabilities and Stockholders' Equity Accounts payable $157,800 $165,890 16,500 20,830 Accrued expenses payable Dividends payable 9,170 7,210 Common stock, $10 par 49,490 39,250 Paid-in capital:...

Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

Homework Answers

Add Answer to:
Statement of Cash Flows—Indirect Method The comparative balance sheet of Merrick Equipment Co. for December 31,...

Post as a guest

Earn Coins