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Statement of Cash Flows

The comparative balance sheet of Orange Angel Enterprises Inc. at December $31,20$Y$8$ and $20$Y$7,$ is as follows:

Dec. $31,20$Y$8$ Dec. $31,20$Y$7$

Assets

Cash $$83,680$ $$102,860$

Accounts receivable $($net$)128,570138,670$

Merchandise inventory $183,680171,880$

Prepaid expenses $7,4805,210$

Equipment $374,160307,940$

Accumulated depreciation$-$equipment $(97,280)(75,520)$

Total assets $$680,290$ $$651,040$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $$142,860$ $$136,070$

Mortgage note payable $0195,310$

Common stock, $$1$ par $22,00014,000$

Excess of paid$-$in capital over par $336,000184,000$

Retained earnings $179,430121,660$

Total liabilities and stockholders$$ equity $$680,290$ $$651,040$

Additional data obtained from the income statement and from an examination of the accounts in the ledger for $20$Y$8$ are as follows:

Net income, $$147,890.$

Depreciation reported on the income statement, $$47,320.$

Equipment was purchased at a cost of $$91,780,$ and fully depreciated equipment costing $$25,560$ was discarded, with no salvage realized.

The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.

$8,000$ shares of common stock were issued at $$20$ for cash.

Cash dividends declared and paid, $$90,120.$

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from $($used for$)$ operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Orange Angel Enterprises Inc.

Statement of Cash Flows

For the Year Ended December $31,20$Y$8$

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