Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $85,010 $104,510
Accounts receivable (net) 130,630 140,890
Inventories 186,630 174,620
Prepaid expenses 7,600 5,290
Equipment 380,140 312,870
Accumulated depreciation-equipment (98,840) (76,730)
Total assets $691,170 $661,450
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $145,150 $138,240
Mortgage note payable 0 198,440
Common stock, $1 par 22,000 14,000
Paid-in capital: Excess of issue price over par-common stock 307,000 187,000
Retained earnings 217,020 123,770
Total liabilities and stockholders equity $691,170 $661,450

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

Net income, $238,720.

Depreciation reported on the income statement, $48,080.

Equipment was purchased at a cost of $93,240, and fully depreciated equipment costing $25,970 was discarded, with no salvage realized.

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

8,000 shares of common stock were issued at $16 for cash.

Cash dividends declared and paid, $145,470.

image text in transcribed

Requirec 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 In Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from cperating 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sarbanes Oxley And The New Internal Auditing Rules

Authors: Robert R. Moeller

1st Edition

0471483060, 978-0471483069

More Books

Students also viewed these Accounting questions