Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2078 and 2077, is as follows: Dec. 31, Dec. 31, 20Y8 2017 Assets $62,980 96,780 138,250 Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Accumulated depreciation equipment 5,630 $77,340 104,270 129,220 3,920 231,540 (56,780) $489,510 281,620 (73,220) $512,040 Total assets 0 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $107,530 $102,310 Mortgage note payable 146,850 Common stock, $1 par 16,000 10,000 Pald-in capital: Excess of issue price over par-common stock 252,000 138,000 Retained earnings 136,510 92,350 Total liabilities and stockholders' equity $512,040 $489,510 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, $113,050 b. Depreciation reported on the income statement, $35,660. c. Equipment was purchased at a cost of $69,300, and fully depreciated equipment costing $19,220 was discarded, with no salvage realized, a Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2078 are as follows: a. Net income, $113,050. b. Depreciation reported on the income statement, $35,660. c. Equipment was purchased at a cost of $69,300, and fully depreciated equipment costing $19,220 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. 1. Cash dividends declared and paid, 568,890 Required: Prepare a statement of cash flows, using the Indirect method. 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 operating activities Net Income 113,050 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense 35,460 Changes in current operating assets and liabilities: Decrease in accounts receivable 7,490 Increase in merchandise inventory X Increase in prepaid expenses X Increase in accounts payable 5,230 Net cash flow from operating activities Cash flows from (used for) investing activities Cash used for equipment X Net cash flow used for investing activities Cash flows from used for) financing activities: Decrease in accounts receivable 7,490 5,220 Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash used for equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Cash used to retire mortgage note payable Net cash flow used for financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year 120,000 77340