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In: AccountingStatement of Cash Flows—Indirect MethodThe comparative balance sheet of Yellow Dog Enterprises Inc. atDecember...Statement of Cash Flows—Indirect MethodThe comparative balance sheet of Yellow Dog Enterprises Inc. atDecember 31, 20Y8 and 20Y7, is as follows:Dec. 31, 20Y8Dec. 31, 20Y7AssetsCash$52,120$64,070Accounts receivable (net)80,09086,380Merchandise inventory114,400107,060Prepaid expenses4,6603,240Equipment233,060191,810Accumulated depreciation-equipment(60,590)(47,040)Total assets$423,740$405,520Liabilities and Stockholders'EquityAccounts payable (merchandise creditors)$88,990$84,750Mortgage note payable0121,660Common stock, $1 par14,0009,000Paid-in capital: Excess of issue price overpar-common stock199,000114,000Retained earnings121,75076,110Total liabilities and stockholders’ equity$423,740$405,520Additional data obtained from the income statement and from anexamination of the accounts in the ledger for 20Y8 are asfollows:Net income, $116,840.Depreciation reported on the income statement, $29,470.Equipment was purchased at a cost of $57,170, and fullydepreciated equipment costing $15,920 was discarded, with nosalvage realized.The mortgage note payable was not due for six years, but theterms permitted earlier payment without penalty.5,000 shares of common stock were issued at $18 for cash.Cash dividends declared and paid, $71,200.Required:Prepare a statement of cash flows, using the indirect method.Use the minus sign to indicate cash out flows, cash payments,decreases in cash, or any negative adjustments.Yellow Dog Enterprises Inc.Statement of Cash FlowsForthe Year Ended December 31, 20Y8Cash flows from operating activities:$Adjustments to reconcile net income to netcash flow from operating activities:Changes in current operating assets andliabilities:Net cash flow from operatingactivities$Cash flows from (used for) investingactivities:$Net cash flow used for investingactivitiesCash flows from (used for) financingactivities:$Net cash flow used for financingactivities$Cash at the beginning of the yearCash at the end of the year$