The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2017, is as follows: Dec. 31, 2048 Dec. 31, 2017 Assets Cash $86,450 $106,500 Accounts receivable (net) 132,840 143,570 Inventories 189,770 177,940 Prepaid expenses 7,730 5,390 Equipment 386,560 318,810 Accumulated depreciation-equipment (100,510) (78,190) $674,020 Total assets $702,840 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $147,600 $140,870 Mortgage note payable 0 202,210 Common stock, $1 par 22,000 14,000 Paid-in capital in excess of par-common stock 310,000 190,000 Retained earnings 223,240 126,940 Total liabilities and stockholders' equity $702,840 $674,020 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, $246,530. b. Depreciation reported on the income statement, $48,780. c. Equipment was purchased at a cost of $94,210 and fully depreciated equipment costing $26,460 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. 8,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $150,230. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 2048 Cash flows from (used for) operating activities: Net income 136,500 X Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation 28,980 X Changes in current operating assets and liabilities: Decrease in accounts receivable 6,190 X Increase in inventories -7,240 X Increase in prepaid expenses -1,390 X 4,160 x Increase in accounts payable 167,200 x Net cash flows from operating activities Cash flows from (used for) investing activities: Cash paid for equipment -56,190 X Net cash flows from investing activities X -56,190 Cash received from sale of common stock 80,000 X Cash paid for dividends -83,180 X Cash paid to retire mortgage note payable -119,570 X Net cash flows from financing activities -122,750 Net decrease in cash -11,740 X Cash balance, January 1, 2048 62,970 X Cash balance, December 31, 2048 $ 51,230 X Feedback