The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

1		Dec. 31, 20Y8	Dec. 31, 20Y7
2	Assets
3	Cash	$151,000.00	$190,000.00
4	Accounts receivable (net)	522,000.00	569,000.00
5	Merchandise inventory	968,000.00	759,000.00
6	Prepaid expenses	28,000.00	19,000.00
7	Equipment	2,032,000.00	1,424,000.00
8	Accumulated depreciation-equipment	(380,000.00)	(304,000.00)
9	Total assets	$3,321,000.00	$2,657,000.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$190,000.00	$171,000.00
12	Mortgage note payable	0.00	759,000.00
13	Common stock, $10 par	1,140,000.00	380,000.00
14	Excess of paid-in capital over par	570,000.00	190,000.00
15	Retained earnings	1,421,000.00	1,157,000.00
16	Total liabilities and stockholders equity	$3,321,000.00	$2,657,000.00

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, $359,000.
b.	Depreciation reported on the income statement, $218,000.
c.	Equipment was purchased at a cost of $750,000, and fully depreciated equipment costing $142,000 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.	76,000 shares of common stock were issued at $15 for cash.
f.	Cash dividends declared and paid, $95,000.

Required:

Labels

December 31, 20Y8

For the Year Ended December 31, 20Y8

Amount Descriptions

Cash paid for equipment

Cash received from issuing common stock

Cash dividends

Cash paid to retire mortgage note payable

Decrease in merchandise inventory

Decrease in accounts payable

Decrease in accounts receivable

Decrease in prepaid expenses

Depreciation

Increase in accounts payable

Increase in accounts receivable

Increase in merchandise inventory

Increase in prepaid expenses

Net increase in cash

Net decrease in cash

Net cash flows from financing activities

Net cash flows from investing activities

Net cash flows from operating activities

Net cash flows used for financing activities

Net cash flows used for investing activities

Net cash flows used for operating activities

Net income

Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.

Orange Angel Enterprises Inc.

Statement of Cash Flows

1	Cash flows from (used for) operating activities:
2
3	Adjustments to reconcile net income to net cash flows from (used for) operating activities:
4
5	Changes in current operating assets and liabilities:
6
7
8
9
10
11	Cash flows from (used for) investing activities:
12
13
14	Cash flows from (used for) financing activities:
15
16
17
18
19
20	Cash balance, January 1, 20Y8
21	Cash balance, December 31, 20Y8

Net loss