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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, 20Y8 Dec. 31, 2017 Assets Cash $58,120 $71,140 Accounts receivable (net) 89,300 95,910 Inventories 127,560 118,870 Prepaid expenses 5,200 3,600 Equipment 259,860 212,980 Accumulated depreciation-equipment (67,560) (52,230) Total assets $472,480 $450,270 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $99,220 $94,110 Mortgage note payable 0 135,080 Common stock, $1 par 14,000 9,000 Paid-in capital in excess of par-common stock 212,000 127,000 Retained earnings 147,260 85,080 Total liabilities and stockholders' equity $472,480 $450,270 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, $159,180. b. Depreciation reported on the income statement, $33,010. c. Equipment was purchased at a cost of $64,560 and fully depreciated equipment costing $17,680 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. 5,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $97,000. 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, 2048 Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: DI 1000 d 200 Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities Cash balance, January 1, 2048 100 Cash balance, December 31, 2048
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