Statement of Cash Flows-Indirect 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 accounts in the ledger for 20y8 are as follows: a. Net income, $137,160. b. Depreciation reported on the income statement, $38,990. c. Equipment was purchased at a cost of $75,940, and fully depreciated equipment costing $20,970 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. 7,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $83,580. Adjustments to reconcile net income to net cash flow from operating activities: \begin{tabular}{lr} \hline & 38,990 \\ \hline Changes in current operating assets and liabilities: & 8,060 \\ \hline Decrease in accounts receivable & 10,000 \\ \hline Increase in inventory & 1,880 \\ \hline Increase in prepaid expenses & 5,820 \\ \hline \end{tabular} Net cash flow from operating activities $178,150 Cash flows from investing activities: Cash paid for equipment Net cash flow used for investing activities Cash flows from financing activities: Cash received from sale of common stock Cash paid for dividends Cash paid to retre mortaage note pavable Net cash flow used for financing activities Change in cash Cash at the end of the year