Statement of Cash FlowsIndirect Method The comparative balance sheet of Yellow Dog Enterprises Inc at December 31, 20Y8 and 20Y7, is as follows Dec 31, 20Y8 Dec 31, 20Y7 Assets Cash $86,670 $105,980 Accounts receivable (net) 133,170 142,880 Merchandise inventory 190,240 177,080 Prepaid expenses 7,750 5,370 Equipment 387,530 317,280 Accumulated depreciation equipment (100,760) (77,810) Total assets $704,600 $670,780 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $147,970 $140,190 Mortgage note payable 0 201,230 Common stock, $1 par 22,000 14,000 Paid in capital Excess of issue price over par common stock 309,000 189,000 Retained earnings 225,630 126,360 Total liabilities and stockholders equity $704,600 $670,780 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows Net income, $254,130 Depreciation reported on the income statement, $49,280 Equipment was purchased at a cost of $96,580, and fully depreciated equipment costing $26,330 was discarded, with no salvage realized The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty 8,000 shares of common stock were issued at $16 for cash Cash dividends declared and paid, $154,860 Required Prepare a statement of cash flows, using the indirect method Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments 31 Yellow Dog Enterprises Inc Statement of Cash Flows For the Year Ended December 31, 2048 Cash flows from operating activities Adjustments to reconcile net income to net cash flow from operating activities Changes in current operating assets and liabilities Net cash flow from operating activities Cash flows from (used for) investing activities Net cash flow used for investing activities Cash flows from (used for) financing activities Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year

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Statement of Cash FlowsIndirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31,

Statement of Cash FlowsIndirect Method

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

		Dec. 31, 20Y8	Dec. 31, 20Y7
Assets
Cash		$86,670	$105,980
Accounts receivable (net)		133,170	142,880
Merchandise inventory		190,240	177,080
Prepaid expenses		7,750	5,370
Equipment		387,530	317,280
Accumulated depreciation-equipment		(100,760)	(77,810)
	Total assets	$704,600	$670,780

Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$147,970	$140,190
Mortgage note payable		0	201,230
Common stock, $1 par		22,000	14,000
Paid-in capital: Excess of issue price over par-common stock		309,000	189,000
Retained earnings		225,630	126,360
	Total liabilities and stockholders equity	$704,600	$670,780

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

Net income, $254,130.
Depreciation reported on the income statement, $49,280.
Equipment was purchased at a cost of $96,580, and fully depreciated equipment costing $26,330 was discarded, with no salvage realized.
The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
8,000 shares of common stock were issued at $16 for cash.
Cash dividends declared and paid, $154,860.

Required:

Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

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Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 2048 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year