Show Me How Cauat Statement of Cash Flows-Indirect Method The comparative balanc
ID: 2610911 • Letter: S
Question
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 ipExplanation / Answer
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 CS10250
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