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, 20Y8Dec. 31, 20Y7Assets Cash$86,780 $106,120 Accounts receivable (net)133,340 143,060 Merchandise inventory190,490 177,320 Prepaid expenses7,760 5,370 Equipment388,030 317,690 Accumulated depreciation-equipment(100,890) (77,910) Total assets$705,510 $671,650 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors)$148,160 $140,370 Mortgage note payable0 201,500 Common stock, $1 par22,000 14,000 Paid-in capital: Excess of issue price over par-common stock341,000 189,000 Retained earnings194,350 126,780 Total liabilities and stockholders equity$705,510 $671,650

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

1. Net income, $172,980.
2. Depreciation reported on the income statement, $49,350.
3. Equipment was purchased at a cost of $96,710, and fully depreciated equipment costing $26,370 was discarded, with no salvage realized.
4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
5. 8,000 shares of common stock were issued at $20 for cash.
6. Cash dividends declared and paid, $105,410.

Required:

Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Cash flows from operating activities:blank Common stockDepreciationInventoryNet incomePrepaid expensesRetained earnings$- Select - Adjustments to reconcile net income to net cash flow from operating activities:blank Cash used for dividendsDecrease in accounts receivableDepreciationIncrease in accounts receivableNet incomeRetained earnings- Select - Changes in current operating assets and liabilities:blank Decrease in accounts payableDecrease in accounts receivableDecrease in inventoryDepreciationIncrease in accounts receivable- Select - Decrease in accounts payableDecrease in merchandise inventoryDecrease in prepaid expensesDepreciationIncrease in accounts receivableIncrease in merchandise inventory- Select - Decrease in accounts payableDecrease in inventoryDecrease in prepaid expensesIncrease in prepaid expenses- Select - Decrease in accounts payableDecrease in prepaid expensesDepreciationIncrease in accounts payableNet incomeRetained earnings- Select - Net cash flow from operating activitiesblank$fill in the blank 13Cash flows from (used for) investing activities:blank Cash paid for common stockCash used for equipmentCash used for dividendsCash paid for merchandise inventoryCash paid for prepaid expensesCash paid to retire mortgage note$- Select - Net cash flow used for investing activitiesblankfill in the blank 16Cash flows from (used for) financing activities:blank Cash received from customersCash received from depreciationCash received from dividendsCash received from net incomeCash received from retained earningsCash from sale of common stock$- Select - Cash paid for accounts payableCash paid for common stockCash used for dividendsCash used for equipmentCash paid for inventoryCash paid for prepaid expenses- Select - Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for inventoriesCash used to retire mortgage note payable- Select - Net cash flow used for financing activitiesblankfill in the blank 23Decrease in cashIncrease in cashblank$- Select -Cash at the beginning of the yearblankfill in the blank 26Cash at the end of the yearblank$fill in the blank 27