Question
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 | $62,270 | $76,300 | |||
| Accounts receivable (net) | 95,680 | 102,870 | |||
| Inventories | 136,670 | 127,500 | |||
| Prepaid expenses | 5,570 | 3,860 | |||
| Equipment | 278,430 | 228,430 | |||
| Accumulated depreciation-equipment | (72,390) | (56,020) | |||
| Total assets | $506,230 | $482,940 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable (merchandise creditors) | $106,310 | $100,930 | |||
| Mortgage note payable | 0 | 144,880 | |||
| Common stock, $1 par | 16,000 | 10,000 | |||
| Paid-in capital: Excess of issue price over par-common stock | 226,000 | 136,000 | |||
| Retained earnings | 157,920 | 91,130 | |||
| Total liabilities and stockholders equity | $506,230 | $482,940 | |||
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
- Net income, $170,980.
- Depreciation reported on the income statement, $35,330.
- Equipment was purchased at a cost of $68,960, and fully depreciated equipment costing $18,960 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, $104,190.
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: | ||
| Net income | $ | |
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| Depreciation | ||
| Changes in current operating assets and liabilities: | ||
| Decrease in accounts receivable | ||
| Increase in inventory | ||
| Increase in prepaid expenses | ||
| Increase in accounts payable | ||
| Net cash flow from operating activities | $ | |
| Cash flows from investing activities: | ||
| Cash paid for equipment | $ | |
| Net cash flow used for investing activities | ||
| Cash flows from financing activities: | ||
| Cash received from sale of common stock | $ | |
| Cash paid for dividends | ||
| Cash paid to retire mortgage note payable | ||
| Net cash flow used for financing activities | ||
| Change in cash | $ | |
| Cash at the beginning of the year | ||
| Cash at the end of the year | $ | |
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Credit Repair How To Repair Your Credit All By Yourself A Beginners Guide To Better Credit
Authors: Ernie Braveboy
1st Edition
1981032878, 978-1981032877
