Statement of Cash FlowsIndirect Method

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

		Dec. 31, 20Y8		Dec. 31, 20Y7
Assets
Cash		$86,190		$106,060
Accounts receivable (net)		132,440		142,980
Inventories		189,180		177,230
Prepaid expenses		7,710		5,370
Equipment		385,400		317,520
Accumulated depreciation-equipment		(100,200)		(77,870)
	Total assets	$700,720		$671,290
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$147,150		$140,300
Mortgage note payable		0		201,390
Common stock, $1 par		22,000		14,000
Paid-in capital: Excess of issue price over par-common stock		309,000		189,000
Retained earnings		222,570		126,600
	Total liabilities and stockholders equity	$700,720		$671,290

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

1. Net income, $245,680.
2. Depreciation reported on the income statement, $48,680.
3. Equipment was purchased at a cost of $94,230, and fully depreciated equipment costing $26,350 was discarded, with no salvage realized.
4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
5. 8,000 shares of common stock were issued at $16 for cash.
6. Cash dividends declared and paid, $149,710.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8

Cash flows from operating activities:
Common stockDepreciationInventoryNet incomePrepaid expensesRetained earningsNet income	$Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Cash paid for dividendsDecrease in accounts receivableDepreciationIncrease in accounts receivableNet incomeRetained earningsDepreciation	Depreciation
Changes in current operating assets and liabilities:
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoryDepreciationIncrease in accounts receivableDecrease in accounts receivable	Decrease in accounts receivable
Decrease in accounts payableDecrease in inventoryDecrease in prepaid expensesDepreciationIncrease in accounts receivableIncrease in inventoryIncrease in inventory	Increase in inventory
Decrease in accounts payableDecrease in inventoryDecrease in prepaid expensesIncrease in prepaid expensesIncrease in prepaid expenses	Increase in prepaid expenses
Decrease in accounts payableDecrease in prepaid expensesDepreciationIncrease in accounts payableNet incomeRetained earningsIncrease in accounts payable	Increase in accounts payable
Net cash flow from operating activities		$fill in the blank 13
Cash flows from investing activities:
Cash paid for common stockCash paid for equipmentCash paid for dividendsCash paid for inventoryCash paid for prepaid expensesCash paid to retire mortgage noteCash paid for equipment	$Cash paid for equipment
Net cash flow used for investing activities		fill in the blank 16
Cash flows from financing activities:
Cash received from customersCash received from depreciationCash received from dividendsCash received from net incomeCash received from retained earningsCash received from sale of common stockCash received from sale of common stock	$Cash received from sale of common stock
Cash paid for accounts payableCash paid for common stockCash paid for dividendsCash paid for equipmentCash paid for inventoryCash paid for prepaid expensesCash paid for dividends	Cash paid for dividends
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for inventoriesCash paid to retire mortgage note payableCash paid to retire mortgage note payable	Cash paid to retire mortgage note payable
Net cash flow used for financing activities		fill in the blank 23
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for inventoriesChange in cashChange in cash		$Change in cash
Cash at the beginning of the year		fill in the blank 26
Cash at the end of the year		$fill in the blank 27