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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,
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 $106,920 $87,530 134,490 192,130 Accounts receivable (net) Inventories 144,150 178,660 Prepaid expenses 7,830 5,410 391,390 320,100 Equipment Accumulated depreciation equipment (101,760) (78,500) Total assets $711,610 $676,740 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable $149,440 $141,440 0 203,020 Common stock, $1 par 14,000 22,000 343,000 Paid-in capital: Excess of issue price over par-common stock 191,000 Retained earnings 197,170 127,280 Total liabilities and stockholders' equity $711,610 $676,740 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, $178,920. b. Depreciation reported on the income statement, $49,830. c. Equipment was purchased at a cost of $97,860, and fully depreciated equipment costing $26,570 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. 8,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $109,030. 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, 2088 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: 1110 Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: 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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