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

1		Dec. 31, 20Y8	Dec. 31, 20Y7
2	Assets
3	Cash	$146,460.00	$179,930.00
4	Accounts receivable (net)	224,660.00	242,920.00
5	Merchandise inventory	321,290.00	299,000.00
6	Prepaid expenses	13,120.00	10,510.00
7	Equipment	654,510.00	537,990.00
8	Accumulated depreciation	(170,510.00)	(132,770.00)
9	Total assets	$1,189,530.00	$1,137,580.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$249,550.00	$237,970.00
12	Mortgage note payable	0.00	335,000.00
13	Common stock, $10 par	75,000.00	25,000.00
14	Paid-in capital: Excess of issue price over parcommon stock	500,000.00	330,000.00
15	Retained earnings	364,980.00	209,610.00
16	Total liabilities and stockholders equity	$1,189,530.00	$1,137,580.00

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, $308,740.
B.	Depreciation reported on the income statement, $83,110.
C.	Equipment was purchased at a cost of $161,890 and fully depreciated equipment costing $45,370 was discarded, with no salvage realized.
D.	10,000 shares of common stock were issued at $22 for cash.
E.	The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
F.	Cash dividends declared and paid, $153,370.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Yellow Dog Enterprises Inc. Score: 125/154 Statement of Cash Flows (Label) Cash flows from operating activities: 2 Net income $308,740.00 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 83,110.00 Changes in current operating assets and liabilities: Increase in accounts payable 11,580.00 Decrease in accounts receivable 18,260.00 Increase in merchandise inventory (22,290.00) (2,610.00) Increase in prepaid expenses 10 Net cash flow from operating activities $396,790.00 12 Cash flows from (used for) investing activities: 13 Cash used for equipment $(161,890.00) net cash flow used for investing activities (161,890.00) 16 Cash flows from (used for) financing activities: 17 Cash from sale of common stock $220,000.00 18 Cash used to retire mortgage note payable (335,000.00) (153,370.00) Cash used for dividends net cash flow used for financing activities 21 Increase in cash (268,370.00) $(33,470.00) 179,930.00 $146,460.00 22 Cash at the beginning of the year 23 Cash at the end of the year