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The comparative balance sheet of Yellow Dog Enterprises Inc. at December 3 1 , 2 0 Y 8 and 2 0 Y 7 , is
The comparative balance sheet of Yellow Dog Enterprises Inc. at December Y and Y is as follows:
Additional data obtained from the income statement and from an examination of the accounts in the ledger for are as follows:
a Net income, $
b Depreciation reported on the income statement, $
c Equipment was purchased at a cost of $ and fully depreciated equipment costing $ 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 shares of common stock were issued at $ for cash.
f Cash dividends declared and paid, $
Required:
cash, or any negative adjustments.
Yellow Dog Enterprises Inc.
Statement of Cash Flows
For the Year Ended December
Line Item Description
Amount
Amount
Cash flows from used for operating activities:
Adjustments to reconcile net income to net cash flows from used for operating activities:
Changes in current operating assets and liabilities:
Decrease in accounts receivable
Increase in inventories
Increase in prepaid expenses
Increase in accounts payable
Net cash flows used for operating activities
Cash flows from used for investing activities:
Cash paid for equipment
Net cash flows used for investing activities
Cash flows from used for financing activities:
Cash received from sale of common stock
Cash paid for dividends
Cash paid to retire mortgage note payable
Net cash flows used for financing activities
Net decrease in cash
Cash balance, January
Cash balance, December
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