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The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, 20Y8 Dec. 31, 20Y7 Assets
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
Dec. 31, 20Y8 | Dec. 31, 20Y7 | ||||
Assets | |||||
Cash | $59,910 | $73,720 | |||
Accounts receivable (net) | 92,050 | 99,380 | |||
Merchandise inventory | 131,500 | 123,180 | |||
Prepaid expenses | 5,360 | 3,730 | |||
Equipment | 267,870 | 220,690 | |||
Accumulated depreciation-equipment | (69,650) | (54,120) | |||
Total assets | $487,040 | $466,580 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $102,280 | $97,520 | |||
Mortgage note payable | 0 | 139,970 | |||
Common stock, $1 par | 16,000 | 10,000 | |||
Paid-in capital: Excess of issue price over par-common stock | 234,000 | 132,000 | |||
Retained earnings | 134,760 | 87,090 | |||
Total liabilities and stockholders equity | $487,040 | $466,580 |
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
- Net income, $122,040.
- Depreciation reported on the income statement, $33,850.
- Equipment was purchased at a cost of $65,500, and fully depreciated equipment costing $18,320 was discarded, with no salvage realized.
- The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
- 6,000 shares of common stock were issued at $18 for cash.
- Cash dividends declared and paid, $74,370.
Required:
Prepare a statement of cash flows, using the indirect method. 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, 20Y8 | ||
Cash flows from 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 at the beginning of the year | ||
Cash at the end of the year | $ |
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