Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Cash Accounts receivable (net) Merchandise inventory Assets Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Dec. 31, 20Y8 Dec. 31, 20Y7 $79,790 $97,780 122,600 131,820 175,140 163,370 7,140 4,950 356,780 292,720 (92,760) (71,790) $648,690 $618,850 Accounts payable (merchandise creditors) $136,220 $129,340 Mortgage note payable 0 185,660 Common stock, $1 par 21,000 13,000 Paid-in capital: Excess of issue price over par-common stock 295,000 175,000 Retained earnings 196,470 115,850 +610 600 Total assets Liabilities and Stockholders' Equity $648,690 $618,850 Accounts payable (merchandise creditors) $136,220 $129,340 Mortgage note payable 0 185,660 Common stock, $1 par 21,000 13,000 Paid-in capital: Excess of issue price over par-common stock 295,000 175,000 Retained earnings 196,470 115,850 Total liabilities and stockholders' equity $648,690 $618,850 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, $206,390, b. Depreciation reported on the income statement, $45,270. c. Equipment was purchased at a cost of $88,360, and fully depreciated equipment costing $24,300 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. 8,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $125,770. Required: Prepare a statement of cash flows, using the direct 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 Ene the Year Endad Daramhor 11 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. 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: Depreciation expense Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) Investing activities: Cash used for equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: 0000000 0 Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash used for equipment 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 Decrease in cash Cash at the beginning of the year Cash at the end of the year 000 00000 10000 00 Liveo, an