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Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2017, is as follows: Dec. 31,
Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2017, is as follows: Dec. 31, 2018 Dec. 31, 2017 Assets $58,460 $71,790 Cash 89,820 96,770 Accounts receivable (net) 119,950 Inventories Prepaid expenses 128,310 5,230 261,390 (67,960) $475,250 Equipment Accumulated depreciation-equipment Total assets 3,630 214,900 (52,700) $454,340 $99,800 $94,960 0 136,300 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings 10,000 16,000 242,000 117,450 128,000 85,080 Total liabilities and stockholders' equity $475,250 $454,340 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, $82,870 b. Depreciation reported on the income statement, $33,100. c. Equipment was purchased at a cost of $64,330, and fully depreciated equipment costing $17,840 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. 6,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $50,500. 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 stock Adjustments to reconcile net income to net cash flow from operating activities: Cash paid for dividends Changes in current operating assets and liabilities: Decrease in inventory Cash paid for dividends Changes in current operating assets and liabilities: Decrease in inventory Decrease in accounts payable Decrease in accounts payable Net cash flow from operating activities Cash flows from investing activities: Cash paid for common stock Net cash flow used for investing activities Cash flows from financing activities: Cash received from customers Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year
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