Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Statement of cash flows-indinect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31,20Y8 and 20Y7, is as follows: Additional data obtained

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Statement of cash flows-indinect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31,20Y8 and 20Y7, is as follows: Additional data obtained from the income statement and from an examination of the aceounts in the ledger for 20rg are as follows: a. Net income, $163,280. b. Depreciation reported on the income statement, $38,230. c. Equipment was purchased at a cost of $73,830 and fully depreciated equipment costing $20,740 was discarded, with ne salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 7,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $99,500. Required: Prepare a statement of cash flows, using the indirect method of presenting cash tlows from (ured for) operating actwitien, Use the minus sign to indicate cash outfiows, cash payments, decrease in cash, or any negative adjustments. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 Line Item Description Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Changes in current operating assets and liabilit) s. Changes in current operating assets and iabilit Decrease in accounts receivabie:- Cash flows from (used for) investing activities: cash paid for eculpmant Cash flows from (used for) financing activities: Check My Work Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Cash flows from (used for) investing activities: Cash paid for equipment Cash flows from (used for) financing activities: Cash balance, January 1, 20Y8 Cash balance, December 31, 20 Y8

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Audit ISO 9001 2015 A Handbook For Auditors

Authors: Chad Kymal

1st Edition

087389927X, 978-0873899277

More Books

Students also viewed these Accounting questions

Question

1. Pretest students to make sure they have prerequisite abilities.

Answered: 1 week ago

Question

9. Describe the characteristics of power.

Answered: 1 week ago