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, 2018 Dec. 31, 2017 $73,130 $89,250 112,380 120,320 160,550 149,110 6,540 4,520 327,020 267,180 (85,030) (65,520) $594,590 $564,860 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $124,860 $118,060 Mortgage note payable 0 169,460 Common stock, $1 par 19,000 12,000 Paid-in capital: Excess of issue price over par-common stock 264,000 159,000 Retained earnings 186,730 106,340 Total liabilities and stockholders' equity $594,590 $564,860 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $205,800. b. Depreciation reported on the income statement, $41,690. c. Equipment was purchased at a cost of $82,020, and fully depreciated equipment costing $22,180 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.