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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 $50,470 $61,720
Accounts receivable (net) 77,550 83,200
Inventories 110,790 103,130
Prepaid expenses 4,510 3,120
Equipment 225,680 184,760
Accumulated depreciation-equipment (58,680) (45,310)
Total assets $410,320 $390,620
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $86,170 $81,640
Mortgage note payable 0 117,190
Common stock, $1 par 13,000 8,000
Paid-in capital in excess of par-common stock 195,000 110,000
Retained earnings 116,150 73,790
Total liabilities and stockholders equity $410,320 $390,620

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

  1. Net income, $108,440.
  2. Depreciation reported on the income statement, $28,710.
  3. Equipment was purchased at a cost of $56,260 and fully depreciated equipment costing $15,340 was discarded, with no salvage realized.
  4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
  5. 5,000 shares of common stock were issued at $18 for cash.
  6. Cash dividends declared and paid, $66,080.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Cash flows from (used for) operating activities:
Common stockDepreciationInventoriesNet incomePrepaid expensesRetained earnings $- Select -
Adjustments to reconcile net income to net cash flow from operating activities:
Cash paid for dividendsDecrease in accounts receivableDepreciationIncrease in accounts receivableNet incomeRetained earnings - Select -
Changes in current operating assets and liabilities:
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivable - Select -
Decrease in accounts payableDecrease in inventoriesDecrease in prepaid expensesDepreciationIncrease in accounts receivableIncrease in inventories - Select -
Decrease in accounts payableDecrease in inventoriesDecrease in prepaid expensesIncrease in prepaid expenses - Select -
Decrease in accounts payableDecrease in prepaid expensesDepreciationIncrease in accounts payableNet incomeRetained earnings - Select -
Net cash flow from operating activities $fill in the blank 13
Cash flows from (used for) investing activities:
Cash paid for common stockCash paid for equipmentCash paid for dividendsCash paid for inventoriesCash paid for prepaid expensesCash paid to retire mortgage note $- Select -
Net cash flow used for investing activities fill in the blank 16
Cash flows from (used for) financing activities:
Cash received from customersCash received from depreciationCash received from dividendsCash received from net incomeCash received from retained earningsCash received from sale of common stock $- Select -
Cash paid for accounts payableCash paid for common stockCash paid for dividendsCash paid for equipmentCash paid for inventoriesCash paid for prepaid expenses - Select -
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for inventoriesCash paid to retire mortgage note payable - Select -
Net cash flow used for financing activities fill in the blank 23
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for inventoriesNet increase in cashNet decrease in cash $- Select -
Cash balance, January 1, 20Y8 fill in the blank 26
Cash balance, December 31, 20Y8 $fill in the blank 27

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