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	$80,000.00	$100,000.00
4	Accounts receivable (net)	275,000.00	300,000.00
5	Inventories	510,000.00	400,000.00
6	Prepaid expenses	15,000.00	10,000.00
7	Equipment	1,070,000.00	750,000.00
8	Accumulated depreciation-equipment	(200,000.00)	(160,000.00)
9	Total assets	$1,750,000.00	$1,400,000.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$100,000.00	$90,000.00
12	Mortgage note payable	0.00	400,000.00
13	Common stock, $10 par	600,000.00	200,000.00
14	Paid-in capital: Excess of issue price over parcommon stock	300,000.00	100,000.00
15	Retained earnings	750,000.00	610,000.00
16	Total liabilities and stockholders equity	$1,750,000.00	$1,400,000.00

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, $190,000.
	b. Depreciation reported on the income statement, $115,000.
	c. Equipment was purchased at a cost of $395,000 and fully depreciated equipment costing $75,000 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. 40,000 shares of common stock were issued at $15 for cash.
	f. Cash dividends declared and paid, $50,000.

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
Decrease in inventory
Decrease in accounts payable
Decrease in accounts receivable
Decrease in prepaid expenses
Depreciation
For the Year Ended December 31, 20Y8
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

x Shaded cells have feedback. X 5 Instructions Statement of Cash Flows Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses 6 7 25,000.00 (110,000.00) (5,000.00) 10,000.00 8 9 Increase in accounts payable 10 Net cash flow from operating activities $225,000.00 11 12 Cash flows from investing activities: 13 Cash paid for equipment Net cash flow used for investing activities $(395,000.00) 14 (395,000.00) 15 $400,000.00 600,000.00 (50,000.00) 16 Cash flows from financing activities: 17 Cash paid to retire mortgage note payable 18 Cash received from sale of common stock 19 Cash paid for dividends Net cash flow from financing activities 21 Change in cash 22 Cash at the beginning of the year 23 Cash at the end of the year 20 150,000.00 $(20,000.00) 100,000.00 $80,000.00 Instructions X Shaded cells have feedback. X 5 6 25,000.00 Statement of Cash Flows Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities 7 (110,000.00) 8 (5,000.00) 10,000.00 9 10 $225,000.00 11 12 Cash flows from investing activities: 13 Cash paid for equipment Net cash flow used for investing activities $(395,000.00) 14 (395,000.00) 15 - 400000 Input out of range. 16 Cash flows from financing activities: 17 Cash paid to retire mortgage note payable 18 Cash received from sale of common stock 19 Cash paid for dividends Net cash flow from financing activities 21 Change in cash 22 Cash at the beginning of the year 23 Cash at the end of the year 20 150,000.00 $(20,000.00) 100,000.00 $80,000.00