Dec. 31, 20Y8	Dec. 31, 20Y7
2	Assets
3	Cash	$95,000.00	$110,000.00
4	Accounts receivable (net)	260,000.00	280,000.00
5	Inventories	520,000.00	450,000.00
6	Prepaid expenses	15,000.00	5,000.00
7	Equipment	1,130,000.00	800,000.00
8	Accumulated depreciation-equipment	(235,000.00)	(190,000.00)
9	Total assets	$1,785,000.00	$1,455,000.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$100,000.00	$75,000.00
12	Mortgage note payable	0.00	500,000.00
13	Common stock, $10 par	500,000.00	200,000.00
14	Paid-in capital in excess of parcommon stock	400,000.00	100,000.00
15	Retained earnings	785,000.00	580,000.00
16	Total liabilities and stockholders equity	$1,785,000.00	$1,455,000.00

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, $250,000.

b. Depreciation reported on the income statement, $135,000.

c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 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. 30,000 shares of common stock were issued at $20 for cash.

f. Cash dividends declared and paid, $45,000.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. 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

1	Cash flows from (used for) operating activities:
2
3	Adjustments to reconcile net income to net cash flow from operating activities:
4
5	Changes in current operating assets and liabilities:
6
7
8
9
10
11
12	Cash flows from (used for) investing activities:
13
14
15
16	Cash flows from (used for) financing activities:
17
18
19
20
21
22	Cash balance, January 1, 20Y8
23	Cash balance, December 31, 20Y8