Statement of Cash Flows-Indirect 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 Accounts receivable (net) Inventories Prepaid expenses Equipment Accumulated depreciation-equipment 83,930 $102,430 128,970 138,080 184,240171,130 5,190 375,310 306,630 (97,580) (75,200) $682,380 $648,260 7,510 Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $143,300 $135,490 0 194,480 14,000 303,000 183,000 214,080 121,290 Total liabilities and stockholders' equity $682,380 $648,260 22,000 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, $237,540 b. Depreciation reported on the income statement, $47,830 c. Equipment was purchased at a cost of $94,130, and fully depreciated equipment costing $25,450 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 $16 for cash f. Cash dividends declared and paid, $144,750