Statement of Cash Flows

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

		Dec. 31, 20Y8		Dec. 31, 20Y7
Assets
Cash		$49,330		$60,330
Accounts receivable (net)		75,800		81,330
Merchandise inventory		108,290		100,790
Prepaid expenses		4,410		3,050
Equipment		220,580		180,600
Accumulated depreciation-equipment		(57,350)		(44,290)
	Total assets	$401,060		$381,810
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$84,220		$79,800
Mortgage note payable		0		114,540
Common stock, $1 par		13,000		8,000
Excess of paid-in capital over par		203,000		108,000
Retained earnings		100,840		71,470
	Total liabilities and stockholders equity	$401,060		$381,810

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

1. Net income, $75,190.
2. Depreciation reported on the income statement, $28,050.
3. Equipment was purchased at a cost of $54,970, and fully depreciated equipment costing $14,990 was discarded, with no salvage realized.
4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
5. 5,000 shares of common stock were issued at $20 for cash.
6. Cash dividends declared and paid, $45,820.

2017 $49,330 Statement of Cash Flows The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 2018 and 2017, is as follows: Dec. 31, Dec. 31, 2018 Assets Cash $60,330 Accounts receivable (net) 75,800 81,330 Merchandise inventory Prepaid expenses Equipment 220,580 180,600 Accumulated depreciation-equipment (57,350) (44,290) Total assets $401,060 $381,810 108,290 100,790 4,410 3,050 $84.220 $79,800 0 114,540 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity 13,000 8,000 203,000 108,000 100,840 71,470 $401,060 $381,810 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2048 are as follows: a. Net income, $75,190. b. Depreciation reported on the income statement, $28,050. C. Equipment was purchased at a cost of $54,970, and fully depreciated equipment costing $14,990 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. 5,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $45,820. 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, 2018 Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities Cash flows from (used for) investing activities: Net cash flows used for investing activities Cash flows from (used for) financing activities: Net cash flows from financing activities Cash balance, January 1, 2078 Cash balance, December 31, 2018