Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 2 3 Cash 4 Accounts receivable (net) 5 Inventories 6 Prepaid expenses 7 Equipment Dec. 31, 20Y8 Dec. 31,20Y7 Assets $95,000.00 $110,000.00 260,000.00 280,000.00 520,000.00 450,000.00 15,000.00 5,000.00 1,130,000.00 800,000.00 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 Check My Work 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 par-common stock 400,000.00 100,000.00 15 Retained earnings 785,000.00 580,000.00 16 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 fo uctions Labels and Amount Descriptions Statement of Cash Flows Instructions 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, $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 s 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. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Statement of Cash Flows 1 (Label) 2 3 4 Yellow Dog Enterprises Inc. Statement of Cash Flows (Label) Adjustments to reconcile net income to net cash flows from (used for) operating activities: 5 Changes in current operating assets and liabilities: 6 Dels and Amount Descriptions Statement of Cash Flows S Changes in current operating assets and liabilities: 9 7 8 9 10 10 11 12 (Label) 13 14 14 15 X 15 16 (Label) 17 18 19 20 20 21 22 23