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	$145,630.00	$180,110.00
4	Accounts receivable (net)	224,520.00	241,890.00
5	Inventories	321,860.00	299,730.00
6	Prepaid expenses	12,550.00	10,220.00
7	Equipment	655,090.00	537,200.00
8	Accumulated depreciation-equipment	(170,220.00)	(132,040.00)
9	Total assets	$1,189,430.00	$1,137,110.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$240,110.00	$237,190.00
12	Mortgage note payable	0.00	335,380.00
13	Common stock, $10 par	507,000.00	244,000.00
14	Paid-in capital: Excess of issue price over parcommon stock	410,000.00	320,000.00
15	Retained earnings	32,320.00	540.00
16	Total liabilities and stockholders equity	$1,189,430.00	$1,137,110.00

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, $186,360
B.	Depreciation reported on the income statement, $82,730
C.	Equipment was purchased at a cost of $162,440 and fully depreciated equipment costing $44,550 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.	Cash dividends declared and paid, $154,580

Statement of cash flows-indirect method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions Dec. 31, 20Y8 Dec. 31,20Y Assets 3 | | Cash 4Accounts recelvable (net) 5 Inventories s Prepaid expenses 7Equipment 8Accumulated depreciation-equipment 9Total assets 145,630.00 $180,110.00 241,890.00 299,730.00 10,220.00 537,200.00 (170,220.00) (132,040.00) $1,189,430.00 $1,137,110.00 224,520.00 321,860.00 12,550.00 655,090.00 Liabilities and Stockholders' Equity 240,110.00 $237190.00 335,380.00 244,000.00 320,000.00 540.00 1,189,430.00 1,137,110.00 1 Accounts payable (merchandise creditors) Mortgage note payable 13 Common stock, $10 par 4 Paid-in capital: Excess of issue price over par-common stock 5Retained eamings 16 Total llabilities and stockholders' equity 0.00 507,000.00 410,000.00 32,320.00 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, $186,360 B. Depreciation reported on the income statement, $82,730 C. Equipment was purchased at a cost of $162,440 and fully depreciated equipment costing $44,550 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. Cash dividends declared and paid, $154,580 Statement of Cash Flows Score: 78/153 Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 1Cash flows from operating activities: 2 Net income $186,360.00 Adjustments to reconcile net income to net cash flow from operating activities: 4Depreciation 82,730.00 Changes in current operating assets and liabilities: 17,370.00 22,130.00)* (2,330.00) 2,920.00 6 Decrease in accounts receivable 7 Increase in inventory 8 ncrease in prepaid expenses 9 Increase in accounts payable 10 12 Cash flows from investing activities: 13 14 Statement of Cash Flows 8 Increase in prepaid expenses (2,330.00) 9 Increase in accounts payable 2,920.00 10 2 Cash flows from investing activities: 13 14 15 16 Cash flows from financing activities: Cash paid to retire mortgage note payable 18 cash received from sale common stock 19 Cash paid for dividends 20 21 22 Cash at the beginning of the year Cash at the end of the year 180,110.00 23