The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31,20Y8 and 20Y7, is as follows: Additional dita obtained from the income statement and trom an examination of the accounts in the ledger for 20Y8 are as follows: A. Net income, $388,740 B. Depreciation reported on the income statemont, $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 mortgago note payable was not due for six years, but the terms permitted earfier payment without penatiy. E. 5,000 shares of 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 af presenting cash fiows from operaling activities. Refor to the Labels and Amount Descriptions list provided for the exact wording of the answer chaices for text ontries. Be sure to complete the heading of the statenent. Use the minus sign to indicate cash outlows. cash payments, decreases in cash, or any negative adfostments. Labels and Amount Descriptions Labels and Amount Deseriptions Cash pad for divends Cash paid tor equipment Cash paid for merchandise Cash paid for purchase of land Cash paid to retire mortgage note payable Cash received from customere Cash received from sale of common stock. 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, 20 Y8 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 Prepare a statement of casti fows, using the indrect method of presenting cash fows trom coerating activiles. Reler to the Labels and Amsount Descriptions fist provided for the exact wording of the answer chaices for haxt enties. Be sure to complete the heading of the statoment. Use the minus sign to indicale cash cutlicws. cask payments, docreases in cash, or ary nogatwe acfustrnents. 5. Changes in current operating assets and liabilities: 6 7 8 9 10 11 12 Cash flows from investing activities: 15 14 15 16. Gash flows from financing activities: 17 18 19 20 31 Cash at the beginning of the year Cash at the end of the year
