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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,
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 | $74,770 | $92,010 | |||
Accounts receivable (net) | 114,890 | 124,040 | |||
Merchandise inventory | 164,120 | 153,730 | |||
Prepaid expenses | 6,690 | 4,660 | |||
Equipment | 334,330 | 275,450 | |||
Accumulated depreciation-equipment | (86,930) | (67,550) | |||
Total assets | $607,870 | $582,340 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $127,650 | $121,710 | |||
Mortgage note payable | 0 | 174,700 | |||
Common stock, $1 par | 19,000 | 12,000 | |||
Paid-in capital: Excess of issue price over par-common stock | 269,000 | 164,000 | |||
Retained earnings | 192,220 | 109,930 | |||
Total liabilities and stockholders equity | $607,870 | $582,340 |
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
- Net income, $210,660.
- Depreciation reported on the income statement, $42,240.
- Equipment was purchased at a cost of $81,740, and fully depreciated equipment costing $22,860 was discarded, with no salvage realized.
- The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
- 7,000 shares of common stock were issued at $16 for cash.
- Cash dividends declared and paid, $128,370.
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: | ||
$ | ||
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 (used for) investing activities: | ||
$ | ||
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 | $ |
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