Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2077, is as follows: Dec. 31, Dec. 31, 2048 2017 Assets Cash $77,070 $94,540 Accounts receivable (net) 118,420 127,450 Merchandise inventory 169,180 157,970 Prepaid expenses 6,890 4,790 Equipment 344,610 283,030 Accumulated depreciation equipment (89,600) (69,410) Total assets $626,570 $598,370 0 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $131,580 $125,060 Mortgage note payable 179,510 Common stock, $1 par 21,000 13,000 Paid-in capital: Excess of issue price over par-common stock 289,000 169,000 Retained earnings 184,990 111,800 Total liabilities and stockholders' equity $626,570 $598,370 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $187,370. b. Depreciation reported on the income statement, $43,680. C. Equipment was purchased at a cost of $85,070, and fully depreciated equipment costing $23,490 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. 8,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $114,180. 187,370 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, 2048 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense 43,680 Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses -2,100 Increase in accounts payable Net cash flow from operating activities 233,290 9,030 -11.210 6.520 85,070 x 85,070 x Cash flows from (used for) investing activities: Cash used for equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Cash used to retire mortgage note payable 128,000 - 114,180 -179,510 -165,690 Net cash flow used for financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year