Dec. 31, 20Y8 Dec. 31, 20Y7

Assets

Cash $67,440 $82,650

Accounts receivable (net) 103,630 111,410

Merchandise inventory 148,040 138,100

Prepaid expenses 6,030 4,180

Equipment 301,560 247,410

Accumulated depreciation-equipment (78,410) (60,680)

Total assets $548,290 $523,070

Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $115,140 $109,320 Mortgage note payable 0 156,920

Common stock, $1 par 18,000 11,000

Excess of paid-in capital over par 267,000 148,000

Retained earnings 148,150 97,830

Total liabilities and stockholders equity $548,290 $523,070

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

Net income, $128,820.

Depreciation reported on the income statement, $38,270.

Equipment was purchased at a cost of $74,690, and fully depreciated equipment costing $20,540 was discarded, with no salvage realized.

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

7,000 shares of common stock were issued at $18 for cash.

Cash dividends declared and paid, $78,500.

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, 20Y8

Cash flows from (used for) operating activities:
Net income	blank

Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Depreciation	blank

Changes in current operating assets and liabilities:
Decrease in accounts receivable	blank
Increase in merchandise inventory	blank
Increase in prepaid expenses	blank
Increase in accounts payable	blank

Net cash flows from operating activities

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Cash flows from (used for) investing activities:
Cash paid for equipment	blank

Net cash flows used for investing activities

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Cash flows from (used for) financing activities:
Cash received from issuing common stock	blank
Cash dividends	blank
Cash paid to retire mortgage note payable	blank

Net cash flows from financing activities		blank
Net decrease in cash		blank

Cash balance, January 1, 20Y8

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Cash balance, December 31, 20Y8 blank