Staterment of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20YB and 20Y7, is as follows: Dec. 31, 20Y8 Dec. 31, 2OY7 Assets Cash $77,140 $94,530 Accounts recelvable (net) 118,530 127,430 Inventories 169,310 157,940 Prepaid expenses 6,900 4,790 Equipment 344,920 282,980 Accumulated depreciation-equipment (89,680) (69,400) Total assets $627,120 $598,270 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $131,700 $125,040 Mortgage note payable 0 179,480 Common stock, $1 par 21,000 13,000 Paid-in capital: Excess of issue price over par-common stock 305,000 169,000 Retained earings 169,420 111,750 Total liabiities and stockholders' equity $627,120 $598,270 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, $147,640. b. Depreciation reported on the income statement, $43,770 c. Equipment was purchased at a cost of $85,430, 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 $18 for cash. f. Cash dividends dedared and paid, $89,970 Required