Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at...

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Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2017, is as follows: Dec. 31, 20Y8 Dec. 31, 2017 Assets Cash Accounts receivable (net) Inventories $49,910 76,700 109,570 4,460 $60,980 82,200 101,890 Prepaid expenses 3,090 Equipment 223,200 182,540 Accumulated depreciation-equipment (58,030) (44,770) Total assets $405,810 $385,930 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $85,220 $80,660 Mortgage note payable 115,780 Common stock, $1 par 13,000 8,000 Paid-in capital in excess of par-common stock 184,000 109,000 Retained earnings 123,590 72,490 Total liabilities and stockholders' equity $405,810 $385,930 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $130,820. b. Depreciation reported on the income statement, $28,410. Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $130,820. b. Depreciation reported on the income statement, $28,410. c. Equipment was purchased at a cost of $55,810 and fully depreciated equipment costing $15,150 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 5,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $79,720. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts payable Increase in inventories Decrease in prepaid expenses Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities Cash balance, January 1, 2048 Cash balance, December 31, 2048

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