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	$95,000.00	$110,000.00
4	Accounts receivable (net)	260,000.00	280,000.00
5	Inventories	520,000.00	450,000.00
6	Prepaid expenses	15,000.00	5,000.00
7	Equipment	1,130,000.00	800,000.00
8	Accumulated depreciation-equipment	(235,000.00)	(190,000.00)
9	Total assets	$1,785,000.00	$1,455,000.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$100,000.00	$75,000.00
12	Mortgage note payable	0.00	500,000.00
13	Common stock, $10 par	500,000.00	200,000.00
14	Paid-in capital in excess of parcommon stock	400,000.00	100,000.00
15	Retained earnings	785,000.00	580,000.00
16	Total liabilities and stockholders equity	$1,785,000.00	$1,455,000.00

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, $250,000.
	b. Depreciation reported on the income statement, $135,000.
	c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 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. 30,000 shares of common stock were issued at $20 for cash.
	f. Cash dividends declared and paid, $45,000.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities.

Labels
Cash flows from (used for) operating activities
Cash flows from (used for) investing activities
Cash flows from (used for) financing activities
December 31, 20Y8
For the Year Ended December 31, 20Y8
Amount Descriptions
Cash paid for dividends
Cash paid for equipment
Cash paid for merchandise
Cash paid for purchase of land
Cash paid to retire mortgage note payable
Cash received from customers
Cash received from sale of common stock
Cash balance, January 1, 20Y8
Cash balance, December 31, 20Y8
Decrease in inventories
Decrease in accounts payable
Decrease in accounts receivable
Decrease in prepaid expenses
Depreciation
Gain on disposal of equipment
Gain on sale of investments
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Increase in prepaid expenses
Loss on disposal of equipment
Loss on sale of investments
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 decrease in cash
Net income
Net increase in cash
Net loss

Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities.

Statement of Cash Flows Instructions

Yellow Dog Enterprises Inc.

Statement of Cash Flows

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