statement of cash flowsndirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2017, is as follows: Dec. 31, 2018 Dec. 31, 2017 Assets Cash $76,960 $62,610 96,200 103,750 137,430 5,600 Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets 279,950 128,600 3,900 230,400 (56,500) $487,110 (72,790) $509,000 $106,890 $101,810 0 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, 51 par Paid-in capital: Excess of issue price over par-common stock Retained earnings 146,130 10,000 16,000 251,000 137,000 135, 110 92,170 Total liabilities and stockholders' equity $509,000 $487.110 Additional data obtained from the income statement and from an examination of the accounts in the lader for 20yre ne Check My Work Previous Total liabilities and stockholders' equity 5509,000 $487 110 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: a. Net Income, $109,930. b. Depreciation reported on the income statement, $35,410. c. Equipment was purchased at a cost of $68,670, and fully depreciated equipment costing $19,120 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. 6,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $66,990. 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, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Previous Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities 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 Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities 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 Net cash flow used for financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year