Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, 20Y8 Cash Accounts receivable (net) Merchandise inventory Assets Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liahilities and stockholders' equity $64,870 99,670 142,380 5,800 290,050 (75,410) $527,360 $110,750 0 18,000 261,000 137,610 $527 360 Dec. 31, 20Y7 $79,660 107,390 133,090 4,030 238,470 (58,480) $504,160 $105,370 151,250 11,000 142,000 94,540 $504 160 4

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 20 Y are as follows: a. Net income, $110,260. b. Depreciation reported on the income statement, $36,720. c. Equipment was purchased at a cost of $71,370, and fully depreciated equipment costing $19,790 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, 567,190 . Required: Prepare a statement of cash fows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustmente. Prepare a statement of cash flows, using the indirect method, Use the minus sign to indicate cash outfiows, cash payments, decreases in cash, or any negative adjustments. Yellow Dog Enterprises Inc. Statement of Cash Flows Farthe Vase Findad Narambur at anvo 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 cosh fiow used for financing activities Cash at the beginning of the year Cash at the end of the year