Statement of cash flowsindirect method

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

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, $98,100. b. Depreciation reported on the income statement, $38,740. c. Equipment was purchased at a cost of $75,290 and fully depreciated equipment costing $20,880 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 $20 for cash. f. Cash dividends declared and paid, $59,780. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 Line Item Description Amount Amount Cash flows from (used for) operating activities: Net income $98,100 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 x Increase in inventories X Increase in prepaid expenses x 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 1,20Y8 Cash balance, December 31,20Y8