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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,
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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 $62,550 $76,650 Accounts receivable (net) 96,110 103,330 Inventories 137,300 128,070 Prepaid expenses 5,590 3,880 Equipment 279,680 229,460 Accumulated depreciation-equipment (72,720) (56,270) Total assets $508,510 $485,120 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $106,790 $101,390 Mortgage note payable 0 145,540 Common stock, $1 par 16,000 10,000 Paid-in capital: Excess of issue price over par-common stock 239,000 137,000 Retained earnings 146,720 91,190 Total liabilities and stockholders equity $508,510 $485,120 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
- Net income, $142,160.
- Depreciation reported on the income statement, $35,500.
- Equipment was purchased at a cost of $69,270, and fully depreciated equipment costing $19,050 was discarded, with no salvage realized.
- The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
- 6,000 shares of common stock were issued at $18 for cash.
- Cash dividends declared and paid, $86,630.
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.
Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 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 $
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