Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2077, is as follows: Dec. 31, 2018 Dec. 31, 2017 Assets Cash $74,430 $91,310 Accounts receivable (net) 114,380 123,100 Merchandise inventory 163,390 152,580 Prepaid expenses 6,660 4,620 Equipment 332,840 273,360 Accumulated depreciation equipment (86,540) (67,040) Total assets $605,160 $577,930 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $127,080 $120,790 Mortgage note payable 0 173,380 19,000 12,000 Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings 282,000 163,000 177,080 108,760 Total liabilities and stockholders' equity $605,160 $577,930 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, $174,900. b. Depreciation reported on the income statement, $42,190. c. Equipment was purchased at a cost of $82,170, and fully depreciated equipment costing $22,690 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, $106,580. 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. 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: Net income $ Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable 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 Check My Work 3 more Check My Work uses remaining. Previous Next