The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2017, is as follows: Excel Show Me How Dec. 31, 2048 Dec. 31, 2017 + Assets Cash ... Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment..... Accumulated depreciation-equipment Total assets. $ 80,000 275,000 510,000 15,000 1,070,000 (200,000) $1,750,000 $ 100,000 300,000 400,000 10,000 750,000 (160,000) $1,400,000 Dec. 31, 20Y8 Dec. 31, 2017 + Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable.. Common stock, $10 par. Paid-in capital: Excess of issue price over par-common stock.. Retained earnings.. Total liabilities and stockholders' equity $ 100,000 0 600,000 300,000 750,000 $1,750,000 $ 90,000 400,000 200,000 100,000 610,000 $1,400,000 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, $190,000. b. Depreciation reported on the income statement, $115,000. c. Equipment was purchased at a cost of $395,000, and fully depreciated equipment costing $75,000 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. 40,000 shares of common stock were issued at $15 for cash. f. Cash dividends declared and paid, $50,000. astructions ells with non-gray backgrounds are protected and cannot be edited. n asterisk (*) will appear to the right of an incorrect entry. The optional work sheet has been rovided as an aid in determining amounts for the statement. * 40,000 shares * $15 = $600,000 YELLOW DOG ENTERPRISES INC. Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Increase (decrease) in cash Cash at the beginning of the year Cash at the end of the year Credit 20,000 Balance, Dec. 31, 20Y8 80,000 275,000 510,000 15,000 1,070,000 (200,000) (100,000) Optional: YELLOW DOG ENTERPRISES INC. Spreadsheet (Work Sheet) for Statement of Cash Flows For the Year Ended December 31, 20Y8 Balance, Transactions Dec. 31, 2017 Debit Cash 100,000 (0) Accounts receivable (net) 300,000 Merchandise inventory 400,000 0) Prepaid expenses 10,000 (0) Equipment 750,000 (h) (g) Accum. depr. - equipment (160,000) (g) (1) Accounts payable (90,000) (e) Mortgage note payable (400,000) (d) Common stock, $10 par (200,000) (c) Paid-in capital in excess of par (100,000) (c) Retained eamings (610,000) (b) (a) Totals Operating activities: Net income (a) Depreciation (0 Decrease in accounts receivable (k) Increase in merchandise inventory 0) Increase in prepaid expenses 0) Increase in accounts payable (e) Investing activities: Purchase of equipment (h) Financing activities: Payment of cash dividends (b) Sale of common stock (c) Payment of mortgage note payable (d) Net decrease in cash Totals (600,000) (300,000) (750,000) Note: The disposal of fully depreciated equipment is not included in the cash flow statement because there is no associated cash flow. This transaction strictly involves the removal of $75,000 from the equipment and accumulated depreciation-equipment accounts