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		$83,220		$102,300
Accounts receivable (net)		127,870		137,910
Merchandise inventory		182,670		170,930
Prepaid expenses		7,440		5,180
Equipment		372,100		306,250
Accumulated depreciation-equipment		(96,750)		(75,110)
	Total assets	$676,550		$647,460
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$142,080		$135,320
Mortgage note payable		0		194,240
Common stock, $1 par		22,000		14,000
Paid-in capital: Excess of issue price over par-common stock		303,000		183,000
Retained earnings		209,470		120,900
	Total liabilities and stockholders equity	$676,550		$647,460

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, $226,740.
2. Depreciation reported on the income statement, $47,060.
3. Equipment was purchased at a cost of $91,270, and fully depreciated equipment costing $25,420 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. 8,000 shares of common stock were issued at $16 for cash.
6. Cash dividends declared and paid, $138,170

Total assets $676,550 $647,460 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $142,080 $135,320 Mortgage note payable D 194,240 Common stock, $1 par 22,000 14,000 Paid-in capital: Excess of issue price over par-common stock 183,000 303,000 209,470 Retained earnings 120,900 Total liabilities and stockholders' equity $676,550 $647,460 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, $226,740. b. Depreciation reported on the income statement, $47,060. c. Equipment was purchased at a cost of $91,270, and fully depreciated equipment costing $25,420 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. 8,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $138,170. 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, Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 2018 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