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 Dec. 31, 20Y8 Dec. 31, 20Y7 $70,400 $86,460 108,180 116,550 154,550 144,460 6,300 4,380 314,810 258,830 (81,850) (63,480) $572,390 $547,200 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $120,200 $114,360 Mortgage note payable 0 164,160 Common stock, $1 par 18,000 11,000 Paid-in capital: Excess of issue price over par-common stock 259,000 154,000 Retained earnings 175,190 103,680 Total liabilities and stockholders' equity $572,390 $547,200