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		$88,200		$107,750
Accounts receivable (net)		135,530		145,260
Inventories		193,610		180,030
Prepaid expenses		7,890		5,460
Equipment		394,400		322,560
Accumulated depreciation-equipment		(102,540)		(79,110)
	Total assets	$717,090		$681,950
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$150,590		$142,530
Mortgage note payable		0		204,590
Common stock, $1 par		22,000		14,000
Paid-in capital in excess of par-common stock		328,000		192,000
Retained earnings		216,500		128,830
	Total liabilities and stockholders equity	$717,090		$681,950

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, $224,440.
2. Depreciation reported on the income statement, $50,200.
3. Equipment was purchased at a cost of $98,610 and fully depreciated equipment costing $26,770 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 $18 for cash.
6. Cash dividends declared and paid, $136,770.

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 outflows, 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 (used for) operating activities:
Net income	$fill in the blank 2
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation	fill in the blank 4
Changes in current operating assets and liabilities:
Decrease in accounts receivable	fill in the blank 6
Increase in inventories	fill in the blank 8
Increase in prepaid expenses	fill in the blank 10
Increase in accounts payable	fill in the blank 12
Net cash flow from operating activities		$fill in the blank 13
Cash flows from (used for) investing activities:
Cash paid for equipment	$fill in the blank 15
Net cash flow used for investing activities		fill in the blank 16
Cash flows from (used for) financing activities:
Cash received from sale of common stock	$fill in the blank 18
Cash paid for dividends	fill in the blank 20
Cash paid to retire mortgage note payable	fill in the blank 22
Net cash flow used for financing activities		fill in the blank 23
Net decrease in cash		$fill in the blank 25
Cash balance, January 1, 20Y8		fill in the blank 26
Cash balance, December 31, 20Y8		$fill in the blank 27