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 $87,420 $107,020 134,330 144,270 191,910 178,820 7,820 5,420 390,910 320,380 (101,640) (78,570) $710,750 $677,340 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $149,260 $141,560 Mortgage note payable 0 203,200 Common stock, $1 par 22,000 14,000 Paid-in capital in excess of par-common stock 343,000 191,000 Retained earnings 196,490 127,580 Total liabilities and stockholders' equity $710,750 $677,340 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, $176,410. b. Depreciation reported on the income statement, $49,660. c. Equipment was purchased at a cost of $97,120 and fully depreciated equipment costing $26,590 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 non charge of common stock ware lecund at $20 for.cach