The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20Y7 2 Assets 3 Cash $146,190.00 $179,070.00 4 Accounts receivable (net) 224,940.00 241,100.00 5 Merchandise inventory 322,390.00 299,700.00 6 Prepaid expenses 12,670.00 9,430.00 7 Equipment 655,160.00 537,730.00 8 Accumulated depreciation (170,790.00) (131,900.00) 9 Total assets $1,190,560.00 $1,135,130.00 10 Liabilities and Stockholders Equity 11 Accounts payable (merchandise creditors) $250,640.00 $237,300.00 12 Mortgage note payable 0.00 336,600.00 13 Common stock, $10 par 73,000.00 23,000.00 14 Paid-in capital: Excess of issue price over parcommon stock 500,000.00 310,000.00 15 Retained earnings 366,920.00 228,230.00 16 Total liabilities and stockholders equity $1,190,560.00 $1,135,130.00 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, $291,590. B. Depreciation reported on the income statement, $83,790. C. Equipment was purchased at a cost of $162,330 and fully depreciated equipment costing $44,900 was discarded, with no salvage realized. D. 10,000 shares of common stock were issued at $24 for cash. E. The mortgage note payable was not due until 2018 but the terms permitted earlier payment without penalty. F. Cash dividends declared and paid, $152,900. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Score: 64/154 Yellow Dog Enterprises Inc. Statement of Cash Flows 1 Cash flows from operating activities: 2 3 Adjustments to reconcile net income to net cash flow from operating activities: 4 5 Changes in current operating assets and liabilities: 6 7 8 9 10 11 12 Cash flows from (used for) investing activities: 13 14 15 16 Cash flows from (used for) financing activities: 17 18 19 20 21 22 Cash at the beginning of the year 23 Cash at the end of the year Points: 12.88 / 31 Feedback Check My Work Calculate the increases and decreases in the current asset/liability accounts over the period. How do these increases or decreases impact the amount of cash a company has? Were there any purchases or sales of noncurrent assets during the year? If there were any sales of noncurrent assets, were these noncurrent assets sold at what the company had initially paid? Or were the assets sold for more or less than the book value? Did the company engage in any activities that affected the equity or debt in their company?