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The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Dec. 31, 2018 Dec. 31, 2017 Assets
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Dec. 31, 2018 Dec. 31, 2017 Assets Cash $90,640 $111,070 Accounts receivable (net) 139,270 149,740 Inventories 185,600 198,960 8,110 Prepaid expenses 5,620 Equipment 405,300 332,520 Accumulated depreciation-equipment (105,380) (81,550) Total assets $736,900 $703,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $154,750 $146,930 0 210,900 Mortgage note payable Common stock, $1 par Paid-in capital in excess of par-common stock 24,000 15,000 198,000 351,000 207,150 Retained earnings 132,170 Total liabilities and stockholders' equity $736,900 $703,000 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, $191,950. b. Depreciation reported on the income statement, $51,430. c. Equipment was purchased at a cost of $100,380 and fully depreciated equipment costing $27,600 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. 9,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $116,970. 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. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 2048 Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash paid for equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Cash paid to retire mortgage note payable Net cash flow used for financing activities Net decrease in cash Cash balance, January 1, 2048 Cash balance, December 31, 2048
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