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Homework answers / question archive / The comparative balance sheet of Merrick Equipment Co
The comparative balance sheet of Merrick Equipment Co. for December 31, 2014 and
2013, is as follows:
DEC 31.2014
DEC 31.2013
Assats
Cash
$70,720
$61,940
Accounts receivable
(net)
207,230
182,190
Inventories
298,520
289,850
Investments
0
102,000
Land
295,800
0
Equipment
438,600
358,020
Accumulated
depreciation—
equipment
(99,110)
(84,320)
$1,211,760
$909,680
Liabilities and Stockholders’ Equity
Accounts payable
(merchandise creditors)
$205,700
$204,140
Accrued expenses
30,600
24,860
payable (operating
expenses)
Dividends payable
25,500
20,400
Common stock, $1 par
202,000
102,000
Paid-in capital: Excess
of issue price over par
—common stock
354,000
204,000
Retained earnings
393,960
354,280
$1,211,760
$909,680
Additional data obtained from an examination of the accounts in the ledger for 2014
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 $91,800 cash
.
d. The common stock was issued for cash.
e. There was a $141,680 credit to Retained Earnings for net income.
f. There was a $102,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows
from operating activities
