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 Prepaid expenses Equipment Assets Accumulated depreciation-equipment Total assets Dec. 31, 2018 Dec. 31, 2017 $78,270 $95,510 120,260 128,760 171,800 159,580 7,000 4,840 349,980 285,930 (90,990) (70,120) $636,320 $604,500 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $133,630 $126,340 Mortgage note payable 0 181,350 Common stock, $1 par 21,000 13,000 Paid-in capital: Excess of issue price over par-common stock 290,000 170,000 Retained earnings 191,690 113,810 Total liabilities and stockholders' equity $636,320 $604,500 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, $199,370. b. Depreciation reported on the income statement, $44,600. c. Equipment was purchased at a cost of $87,780, and fully depreciated equipment costing $23,730 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. 8,000 shares of common stock were issued at $16 for cash.