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 $47,640 $58,130 Accounts receivable (net) 73,200 78,370 Inventories 104,560 97,140 Prepaid expenses 4,260 2,940 Equipment 213,010 174,030 Accumulated depreciation-equipment (55,380) (42,680) Total assets $387,290 $367,930 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $81,330 $76,900 Mortgage note payable 0 110,380 Common stock, $1 par 13,000 8,000 Paid-in capital: Excess of issue price over par-common stock 199,000 104,000 Retained earnings 93,960 68,650 Total liabilities and stockholders equity $387,290 $367,930

Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2017, is as follows: Dec. 31, Dec. 31, 2018 2017 Assets Cash $47,640 $58,130 Accounts receivable (net) 73,200 78,370 Inventories 104,560 97,140 Prepaid expenses 4,260 2,940 Equipment 213,010 174,030 Accumulated depreciation-equipment (55,380) (42,680) Total assets $387,290 $367,930 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $81,330 $76,900 Mortgage note payable 0 110,380 Common stock, $1 par 13,000 8,000 Paid-in capital: Excess of issue price over par-common stock 199,000 104,000 Retained earnings 93,960 68,650 Total liabilities and stockholders' equity $387,290 $367,930 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, $64,790. b. Depreciation reported on the income statement, $27,140. C. Equipment was purchased at a cost of $53,420, and fully depreciated equipment costing $14,440 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. 5,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $39,480. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. 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 investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year