Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Assets Cash Accounts receivable (net) Inventories Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Dec. 31, 20Y8 Dec. 31, 20Y7 $65,150 $79,580 100,100 107,290 143,000 132,980 5,830 4,030 291,310- 238,250 (75,740) (58,430) $529,650 $503,700 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $111,230 $105,270 Mortgage note payable 0 151,110 Common stock, $1 par 18,000 11,000 Paid-in capital in excess of par-common stock 261,000 142,000 Retained earnings 139,420 94,320 Total liabilities and stockholders' equity $529,650 $503,700 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, $115,460. b. Depreciation reported on the income statement, $37,080. c. Equipment was purchased at a cost of $72,830 and fully depreciated equipment costing $19,770 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 $18 for cash. Check My Work 2 more Check My Work uses remaining. Email Instructor