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, 20Y7Assets Cash$62,090 $76,330 Accounts receivable (net)95,410 102,900 Inventories136,310 127,550 Prepaid expenses5,550 3,860 Equipment277,650 228,510 Accumulated depreciation-equipment(72,190) (56,040) Total assets$504,820 $483,110 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors)$106,010 $100,970 Mortgage note payable0 144,930 Common stock, $1 par16,000 10,000 Paid-in capital in excess of par-common stock250,000 136,000 Retained earnings132,810 91,210 Total liabilities and stockholders equity$504,820 $483,110

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

1. Net income, $106,500.
2. Depreciation reported on the income statement, $35,120.
3. Equipment was purchased at a cost of $68,110 and fully depreciated equipment costing $18,970 was discarded, with no salvage realized.
4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
5. 6,000 shares of common stock were issued at $20 for cash.
6. Cash dividends declared and paid, $64,900.

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.