The Following Information Is Available for Mergenthaler Corporation for the Year

question 13

Essay

The following information is available for Mergenthaler Corporation for the year ended December 31, 2014: $\begin{array}{lr}\text { Collection of principal on long-term loan to a supplier } & \$ 16,000 \\\text { Acquisition of equipment for cash } & 10,000 \\\text { Proceeds from the sale of long-term investment at book value } & 22,000 \\\text { Issuance of common stock for cash } & 20,000 \\\text { Depreciation expense } & 25,000 \\\text { Redemption of bonds payable at carrying (book) value } & 34,000 \\\text { Payment of cash dividends } & 6,000 \\\text { Net income } & 30,000 \\\text { Purchase of land by issuing bonds payable } & 40,000\end{array}$
In addition, the following information is available from the comparative balance sheet for Mergenthaler at the end of 2014 and 2013: Instructions
Prepare Mergenthaler's statement of cash flows for the year ended December 31, 2014, using the indirect method.

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Definitions:

Civil Conduct

Behavior that is acceptable and appropriate in civil society and legal contexts, often pertaining to respect for laws and interpersonal etiquette.

Supreme Power

The highest authority or power in a given context, often referring to sovereign governments or entities.

Common Law

A body of legal principles that derives from judicial decisions rather than statutes or written legislation.

Inquisitorial System

A legal system where the court or a part of the court is actively involved in investigating the facts of the case, common in civil law jurisdictions.