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The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Assets Cash Accounts receivable (net) Inventories Prepaid
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Assets Cash Accounts receivable (net) Inventories Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Dec. 31, 20Y8 Dec. 31, 20Y7 $48,430 $59,600 74,420 80,350 106,330 99,590 4,330 3,020 216,570 178,430 (56,310) (43,760) $393,770 $377,230 Accounts payable (merchandise creditors) $82,690 $78,840 Mortgage note payable 0 113,170 Common stock, $1 par 13,000 8,000 Paid-in capital in excess of par-common stock 181,000 106,000 Retained earnings 117,080 71,220 Total liabilities and stockholders' equity $393,770 $377,230 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, $117,400. b. Depreciation reported on the income statement, $27,360. c. Equipment was purchased at a cost of $52,950 and fully depreciated equipment costing $14,810 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. 5,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $71,540. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. 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 (used for) operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities Cash balance, January 1, 20Y8 Cash balance, December 31, 20Y8
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