The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2077, is as follows: 1 1 Dec. 31, 2048 Dec 31, 2017 2 Assets 3 Cash $146,460.00 $179,930.00 + Accounts receivable (net) 224,660.00 242,920.00 5 Inventories 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 equipment (170,510.00) (132,770.00) 9 Total assets $1,189,530.00 $1,137,580.00 10 Liabilities and Stockholders' Equity $239,550.00 $237,970.00 0.00 335,000.00 11 Accounts payable (merchandise creditors) 12 Mortgage note payable 13 Common stock, $10 par $ 14 Paid-in capital: Excess of issue price over par-common stock 15 Retained earnings 291,000.00 241,000.00 430,000.00 330,000.00 228,980.00 (6,390.00) 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: 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, $388,740 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. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. E. 5,000 shares common stock were issued at $30.00 for cash. 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 outflows, cash payments, decreases in cash, or any negative adjustments. Labels and Amount Descriptions Labels and 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 Change in cash December 31, 20Y8 Change in cash December 31, 20Y8 Decrease in inventory Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid expenses Depreciation For the Year Ended December 31, 2048 Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in prepaid expenses Loss on disposal of equipment Loss on sale of investments Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Net income Net loss Statement of Cash Flows Shaded cells have feedback. 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 outflows, cash payments, decreases in cash, or any negative adjustments. Yellow Dog Enterprises Inc. Score: 36/153 Statement of Cash Flows (Label) 1 Cash flows from operating activities: Net income $176,740.00 3 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 4 5 Changes in current operating assets and liabilities: Decrease in accounts receivable 7 Increase in inventory 8 Increase in prepaid expenses 9 Increase in accounts payable 10 11 12 Cash flows from investing activities: 13 14 11 12 Cash flows from investing activities: 13 14 15 16 Cash flows from financing activities: 17 18 19 20 21 22 Cash at the beginning of the year 23 Cash at the end of the year Points: 7.29/31 Feedback Check My Work Compute the increases and decreases in the current asset/liability accounts over the period. How do these increases or decreases impact the amount of cash a company has? Were there any purchases or sales of noncurrent assets during the year? If there were any sales of noncurrent assets, were these noncurrent assets sold at what the company had initially paid? Or were the assets sold for more or less than the book value? Did the company engage in any activities that affected the equity or debt in their company