Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2017, is as follows: Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Assets Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Dec. 31, 20Y8 Dec. 31, 20Y7 $62,870 $77,440 96,600 104,400 138,000 129,410 5,620 3,920 281,110 231,840 (73,090) (56,860) $511,110 $490,150 Accounts payable (merchandise creditors) $107,330 $102,440 Mortgage note payable 0 147,050 Common stock, $1 par 16,000 10,000 Paid-in capital: Excess of issue price over par-common stock 252,000 138,000 Retained earnings 135,780 92,660 Total liabilities and stockholders' equity $511,110 $490,150 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, $110,390. b. Depreciation reported on the income statement, $35,470. c. Equipment was purchased at a cost of $68,510, and fully depreciated equipment costing $19,240 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. 6,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $67,270. 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. EBOOK 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, 20Y8 Cash flows from operating activities: Net income 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 (used for) investing activities: 148,260 X Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Cash used to retire mortgage note payable Net cash flow used for financing activities 120,000 Cash at the beginning of the year Cash at the end of the year x x