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 $61,290 $75,190 Accounts receivable (net) 101,360 Merchandise Inventory 125,630 Prepaid expenses 94,180 134,550 5,480 274,070 (71,260) Equipment 3,810 225,100 Accumulated depreciation equipment (55,200) Total assets $498,310 $475,890 $104,650 $99,460 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, 51 par 0 142,770 16,000 236,000 10,000 134,000 Paid-in capital: Excess of issue price over par common stock Retained earnings 141,660 89,660 Total liabilities and stockholders' equity $498,310 $475,890 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, $133,120. b. Depreciation reported on the income statement, $34,740. c. Equipment was purchased at a cost of $67,650, and fully depreciated equipment costing $18,680 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. 6,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $81,120. Required: Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outfows, 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 operating activities Net income 133,120 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense 34,740 Changes in current operating assets and liabilities: Decrease in accounts receivable 7.180 Increase in merchandise inventory 8920 Increase in prepaid expenses 1.670 Deprecacionexpense 34,740 7,180 8,920 Changes in current operating assets and liabilities: Decrease in accounts receivable 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: 1,670 5,190 Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year