Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: a. Net income, $103,810. b. Depreciation reported on the income statement, $39,160. c. Equipment was purchased at a cost of $76,600, and fully depreciated equipment costing $20,970 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. 7,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $63,260. 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 out flows, cash payments, decreases in cash, or any negative adjustments. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year QONU De Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2077, is as follows: Dec. 31, Dec. 31, 20Y8 2017 Assets Cash $68,950 $84,410 105,950 113,790 Accounts receivable (net) Inventories 151,350 141,040 6,170 308,320 Prepaid expenses Equipment Accumulated depreciation equipment Total assets 4,270 252,690 (61,970) $534,230 (80,160) $560,580 $111,650 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Pald-in capital: Excess of issue price over par-common stock $117,720 0 160,270 11,000 18,000 284,000 151,000 Retained earnings 140,860 100,310 $534,230 Total liabilities and stockholders' equity $560,580 Check My Work Previous