Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2047, is as follows: 1 Dec 31, 2048 Dec 31, 2017 2 Assets 3 Cash $80,000.00 $100,000.00 4 Accounts receivable (net) 275,000.00 300,000.00 5 Inventories 510,000.00 400,000.00 6 Prepaid expenses 15,000.00 10,000.00 7 Equipment 1,070,000.00 750,000.00 8 Accumulated depreciation-equipment (200,000.00) (160,000.00) 9 Total assets $1,750,000.00 $1,400,000.00 10 Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) $100,000.00 $90,000.00 12 Mortgage note payable 0.00 400,000.00 15 Common stock, $10 par 600,000.00 200,000.00 14 Paid-in capital. Excess of issue price over par-common stock 300,000.00 100,000.00 15 Retained earings 750,000.00 610,000.00 16 Total liabilities and stockholders equity $1,750,000.00 $1,400,000.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Instructions 7 Equipment 1070,000.00 750,000.00 8 Accumulated depreciation equipment (200,000.00 (160,000.00) 9 Total assets $1,750,000.00 $1,400,000.00 10 Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) $100,000.00 $90,000.00 12 Mortgage note payable 0.00 400,000.00 15 Common stock, $10 par 600,000.00 200,000.00 14 Paid-in capital: Excess of issue price over par-common stock 300,000.00 100,000.00 15 Retained eamings 750,000.00 610,000.00 16 Total liabilities and stockholders' equity $1,750,000.00 $1,400,000.00 v 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, S190.000 b. Depreciation reported on the income statement, S115.000. c. Equipment was purchased at a cost of $395,000 and fully depreciated equipment costing $75,000 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 40.000 shares of common stock were issued at $15 for cash. f. Cash dividends declared and paid, $50,000. 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 sta amounts that represent cash outflows as negative numbers using a minus sign. Instructions Labels and Amount Descriptions Statennent:of Cash Flours Labels and Amount Descriptions X Labels and Amount Descriptions Cash paid for dividends Cash paid for equipment Cash paid for merchandise Cash paid for purchase of land Cash paid to retire mortgage note payable Cash received from customers Cash received from sale of common stock Change in cash December 31. 20Y8 Decrease in inventory Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid expenses Depreciation For the Year Ended December 31, 20Y8 Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in prepaid expenses Loss on disposal of equipment Loss on sale of investments Net cash flow from financing activities Labels and Amount Descriptions X Cash received from sale of common stock Change in cash December 31, 20Y8 Decrease in inventory Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid expenses Depreciation For the Year Ended December 31, 2048 Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in prepaid expenses Loss on disposal of equipment Loss on sale of investments Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Net income Net loss Statement of Cash Flows 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 stat amounts that represent cash outflows as negative numbers using a minus sign Yellow Dog Enterprises Inc. Statement of Cash Flows (Label) 1 Cash flows from operating activities 2 3 Adjustments to reconcile net income tb net cash flow from operating activities: + 5 Changes in current operating assets and liabilities. 7 8 9 10 1 11 Cash flows from investing activities. 1 14 15 16 Cash flows from financing activities Statement of Cash Flows 2 3 Adjustments to reconcile net income to net cash flow from operating activities: 4 5 Changes in current operating assets and liabilities: 3 9 12 Cash flows from investing activities 13 15 16 Cash flows from financing activities: 19 20 22 Cash at the beginning of the year 25 Cash at the end of the year