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, 20Y8Dec. 31, 20Y7

Assets

Cash$77,900 $95,460

Accounts receivable (net)119,700 128,690

Inventories171,000 159,520

Prepaid expenses6,970 4,830

Equipment348,330 285,790

Accumulated depreciation-equipment(90,570) (70,090)

Total assets$633,330 $604,200

Liabilities and Stockholders' Equity

Accounts payable (merchandise creditors)$133,000 $126,280

Mortgage note payable0 181,260

Common stock, $1 par21,000 13,000

Paid-in capital in excess of par-common stock306,000 170,000

Retained earnings173,330 113,660

Total liabilities and stockholders equity$633,330 $604,200

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

Net income, $152,760.

Depreciation reported on the income statement, $44,200.

Equipment was purchased at a cost of $86,260 and fully depreciated equipment costing $23,720 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 $18 for cash.

Cash dividends declared and paid, $93,090.

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 outflows, cash payments, decreases in cash, or any negative adjustments.

Yellow Dog Enterprises Inc.

Statement of Cash Flows

For the Year Ended December 31, 20Y8

Cash flows from (used for) 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 balance, January 1, 20Y8

Cash balance, December 31, 20Y8$