Statement of cash flowsindirect method Instructions Labels and Amount Descriptions Statement of Cash Flows X Instructions The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20Y7 2 Assets 3 Cash $80,000.00 $100,000.00 4 Accounts receivable (net) 275,000.00 300,000.00 5 Merchandise inventory 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 13 Common stock, $10 par 600,000.00 200,000.00 14 Paid-in capital: Excess of issue price over parcommon stock 300,000.00 100,000.00 15 Retained earnings 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: 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. 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 statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required, and enter in the order listed on the Instructions page.