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