Statement of Cash FlowsIndirect 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		$58,500		$72,060
Accounts receivable (net)		89,880		97,140
Inventories		128,410		120,400
Prepaid expenses		5,230		3,650
Equipment		261,560		215,720
Accumulated depreciation-equipment		(68,010)		(52,900)
	Total assets	$475,570		$456,070
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$99,870		$95,320
Mortgage note payable		0		136,820
Common stock, $1 par		16,000		10,000
Paid-in capital: Excess of issue price over par-common stock		219,000		129,000
Retained earnings		140,700		84,930
	Total liabilities and stockholders equity	$475,570		$456,070

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

Net income, $142,770.

Depreciation reported on the income statement, $33,010.

Equipment was purchased at a cost of $63,740, and fully depreciated equipment costing $17,900 was discarded, with no salvage realized.

The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.

6,000 shares of common stock were issued at $16 for cash.

Cash dividends declared and paid, $87,000.

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 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, 20Y8

Cash flows from operating activities:

$

Adjustments to reconcile net income to net cash flow from operating activities:

Changes in current operating assets and liabilities:

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

Reporting Land Transactions on Statement of Cash Flows

On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:

ACCOUNT Land									ACCOUNT NO.
									Balance
Date			Item		Debit		Credit		Debit		Credit
Jan.	1			Balance					1,226,000
Mar.	12			Purchased for cash	392,000				1,618,000
Oct.	4			Sold for $215,000			184,000		1,434,000

Item	Section of Statement of Cash Flows	Added or Deducted	Amount
Mar. 12: Purchase of fixed asset			$
Oct. 4: Sale of fixed asset			$
Gain on sale of fixed asset (assume the indirect method)			$