Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Assets Cashi Accounts receivable (net) Inventories Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Dec. 31, 2018 Dec. 31, 2017 $47,050 $57,840 72,290 77,970 103,280 96,630 4,210 2,930 210,380 173,150 (54,700) (42,460) $382,510 $366,060 Accounts payable (merchandise creditors) $80,330 $76,510 Mortgage note payable 0 109,820 Common stock, $1 par 13,000 8,000 Paid-in capital in excess of par-common stock 188,000 103,000 Retained earnings 101,180) 68,730 Total liabilities and stockholders' equity $382,510, $366,060 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20YB are as follows: a. Net income, $83,070. b. Depreciation reported on the income statement, $26,610. c. Equipment was purchased at a cost of $51,600 and fully depreciated equipment costing $14,370 was discarded, with no salvage realized. the terme nermitted earlier navment without penalty.