Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2077, is as follows: Dec. 31. 2018 Dec. 31, 2017 Assets Cash $47.980 $58,550 Accounts receivable (net) 73,730 78,940 105,320 97,850 Inventories Prepaid expenses Equipment 4,290 2,960 175,290 214,560 Accumulated depreciation equipment (42.990) (55,780) $390,100 Total assets $370,600 0 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $81,920 $77,460 Mortgage note payable 111,180 Common stock, 31 par 13,000 8,000 Pald-in capital: Excess of issue price over par common stock 190,000 105,000 Retained earnings 105,180 68,960 Total liabilities and stockholders' equity $390,100 $370,600 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, 592,720 b. Deprecation reported on the income statement, $27,340. c. Equipment was purchased at a cost of $53,820, and fully deprecated equipment costing $14,550 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 5,000 shares of common stock were issued at $18 for cash, 1. Cash dividends dedared and paid, $56,500 Required: Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Net income 111 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities Cash flows from investing activities: Cash paid for equipment Net cash flow used for investing activities Cash flows from financing activities: Cash received from sale of common stock Cash paid for dividends 0 0 000 DVD Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year