Statement of cash flows-indirect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Assets December 31, 2018 December 31, 2017 Cash Accounts receivable (net) $69,880 $85,730 107,380 115,570 Inventories 153,410 143,240 Prepaid expenses Equipment 6,250 4,340 312,490 256,650 Accumulated depreciation-equipment (81,250) (62,940) Total assets $568,160 $542,590 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $119,310 $113,400 Mortgage note payable 0 162,780 Common stock, $1 par 18,000 11,000 Paid-in capital in excess of par-common stock 258,000 153,000 Retained earnings 172,850 102,410 Total liabilities and stockholders' equity $568,160 $542,590 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: a. Net income, $180,330. eBook Show Me How Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: a. Net income, $180,330. b. Depreciation reported on the income statement, $39,610. c. Equipment was purchased at a cost of $77,140 and fully depreciated equipment costing $21,300 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 $16 for cash, f. Cash dividends declared and paid, $109,890. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) 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, 2018 Line Item Description Amount Amount Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories Increase in prepaid expenses Increase in accounts payable Net cash flows from operating activities Check My Work 180330 39,610 eBook Net income Show Me How Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories Increase in prepaid expenses Increase in accounts payable Net cash flows from operating activities Cash flows from (used for) investing activities: Cash paid for equipment Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Cash paid to retire mortgage note payable Net cash flows from financing activities Net decrease in cash Cash balance, January 1, 2018 Cash balance, December 31, 2018 180,330 39,610 0000 Q O 0000