Statement of Cash Flows--Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2017, is as follows: Dec. 31, 2018 Dec. 31, 2017 Assets Cash $81,910 125,860 Accounts receivable (net) Inventories 179,810 $100,380 135,320 167,730 5,080 300,510 7,330 Prepaid expenses Equipment Accumulated depreciation-equipment 366,270 (95,230) $665,950 (73,700) $635,320 Total assets Liabilities and Stockholders' Equity $139,850 $132,780 Accounts payable (merchandise creditors) Mortgage note payable 0 190,600 21,000 13,000 Common stock, $1 par 331,000 179,000 Paid-in capital: Excess of issue price over par-common stock 174 100 119,940 Paid in capital: Excess of issue price over par-common stock 331,000 179,000 Retained earnings 174,100 119,940 Total liabilities and stockholders' equity $665,950 $635,320 Additional data obtained from the income statement and from an examination of the accounts in the leder for 2018 are as follows: a. Net income, $138,650. b. Depreciation reported on the income statement. $46,470. c. Equipment was purchased at a cost of $90,700, and fully depreciated equipment costing $24,940 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 $20 for cash. f. Cash dividends declared and paid, $84,490. 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, 2018 Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from operating activities: Net income 138,650 46,470 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 12,080 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 84,490 Check My Work Increase in prepaid expenses II 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 84,490X Cash paid for dividends Cash paid to retire mortgage note payable Net cash flow used for financing activities Change in cash IDO) Cash at the beginning of the year Cash at the end of the year Feedback Check My Work Compute the increases and decreases in the current asset/liability accounts over the period. How do these increases or de More there any purchases or sales of noncurrent assets during the year? If there were any sales of noncur