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Statement of cash flowsindirect method

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

Line Item Description	December 31, 20Y8	December 31, 20Y7
Assets
Cash	$82,900	$102,020
Accounts receivable (net)	127,380	137,530
Inventories	181,980	170,450
Prepaid expenses	7,410	5,170
Equipment	370,690	305,400
Accumulated depreciation-equipment	(96,380)	(74,900)
Total assets	$673,980	$645,670
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$141,540	$134,950
Mortgage note payable	0	193,700
Common stock, $1 par	22,000	14,000
Paid-in capital in excess of par-common stock	318,000	182,000
Retained earnings	192,440	121,020
Total liabilities and stockholders equity	$673,980	$645,670

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

Net income, $182,840.

Depreciation reported on the income statement, $46,830.

Equipment was purchased at a cost of $90,640 and fully depreciated equipment costing $25,350 was discarded, with no salvage realized.

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

8,000 shares of common stock were issued at $18 for cash.

Cash dividends declared and paid, $111,420.

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.

Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8

Line Item Description	Amount	Amount
Cash flows from (used for) operating activities:	blank
Common stockDepreciationNet incomePrepaid expensesRetained earningsNet income	$Net income
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Cash paid for dividendsDecrease in accounts receivableDepreciationIncrease in accounts receivableRetained earningsDepreciation	Depreciation
Changes in current operating assets and liabilities:
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivableDecrease in accounts receivable	Decrease in accounts receivable
Decrease in accounts payableDecrease in inventoriesDecrease in prepaid expensesIncrease in accounts receivableIncrease in inventoriesIncrease in inventories	Increase in inventories
Decrease in accounts payableDecrease in inventoriesDecrease in prepaid expensesIncrease in prepaid expensesLoss on sale of investmentsIncrease in prepaid expenses	Increase in prepaid expenses
Decrease in accounts payableDecrease in prepaid expensesIncrease in accounts payableNet incomeRetained earningsIncrease in accounts payable	Increase in accounts payable
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows from operating activitiesNet cash flows used for investing activitiesNet cash flows used for operating activitiesNet cash flows from operating activities		$Net cash flows from operating activities
Cash flows from (used for) investing activities:
Cash paid for common stockCash paid for equipmentCash paid for inventoriesCash paid for prepaid expensesCash paid to retire mortgage noteCash paid for equipment	$Cash paid for equipment
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows used for financing activitiesNet cash flows used for investing activitiesNet cash flows used for operating activitiesNet cash flows used for investing activities		Net cash flows used for investing activities
Cash flows from (used for) financing activities:
Cash received from customersCash received from depreciationCash received from dividendsCash received from retained earningsCash received from sale of common stockCash received from sale of common stock	$Cash received from sale of common stock
Cash paid for accounts payableCash paid for common stockCash paid for dividendsCash paid for equipmentCash paid for prepaid expensesCash paid for dividends	Cash paid for dividends
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid to retire mortgage note payableCash paid to retire mortgage note payable	Cash paid to retire mortgage note payable
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows used for financing activitiesNet cash flows used for investing activitiesNet cash flows used for operating activitiesNet cash flows from financing activities		Net cash flows from financing activities
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for inventoriesNet increase in cashNet decrease in cashCash paid for accumulated depreciation		$Cash paid for accumulated depreciation
Cash balance, January 1, 20Y8		Cash balance, January 1, 20Y8
Cash balance, December 31, 20Y8		$Cash balance, December 31, 20Y8