Obj. 2, 3, 4, 5 The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2017, is as follows: SHOW ME HOW EXCEL TEMPLATE Dec. 31, 20Y8 Dec 31, 2017 .. Assets Cash Accounts receivable (net). Inventories Prepaid expenses Equipment...... Accumulated depreciation equipment Total assets. Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable.... Common stock, 510 par.... Paid-in capital: Excess of issue price over par-common stock Retained earnings..... Total liabilities and stockholders' equity. $ 80,000 275,000 510,000 15,000 1.070,000 (200,000) $1,750,000 $ 100,000 300,000 400,000 10,000 750,000 (160,000) $1.400,000 . $ 100,000 0 600,000 300,000 750,000 $1,750,000 $ 90,000 400,000 200,000 100,000 610,000 $1,400,000 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, $190,000 B. Depreciation reported on the income statement, $115,000. 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. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Answer A B C D G H N o A Credit Optional: YELLOW DOG ENTERPRISES INC. Spreadsheet (Work Sheet) for Statement of Cash Flows For the Year Ended December 31, 20Y8 Balance, Transactions Dec. 31, 2017 Debit Cash 100,000 Accounts receivable (net) 300.000 Inventory 400,000 Prepaid expenses 10,000 Equipment 750,000 Accum, depr. - equipment (160,000) Accounts payable (90,000) Mortgage note payable (400,000) Common stock, $10 par (200,000) Paid-in capital in excess of par (100,000) Retained earnings (610,000) Totals -0 Operating activities: Net income Depreciation Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Investing activities: Purchase of equipment Financing activities: Payment of cash dividends Sale of common stock Payment of mortgage note payable Net change in cash Totals Balance Dec. 31, 20YB 80,000 275,000 510,000 15,000 1.070,000 (200,000) (100,000) -0 (600,000) (300,000) (750,000) -0 YELLOW DOG ENTERPRISES INC. Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: III II Net cash flow used for financing activities Change in cash Cash at the beginning of the year Cash at the end of the year Optional: YELLOW DOG ENTERPRISES INC