Question
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, 20Y8 Dec. 31, 20Y7 Assets
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
Dec. 31, 20Y8 | Dec. 31, 20Y7 | ||||
Assets | |||||
Cash | $82,620 | $101,250 | |||
Accounts receivable (net) | 126,950 | 136,490 | |||
Inventories | 181,360 | 169,170 | |||
Prepaid expenses | 7,390 | 5,130 | |||
Equipment | 369,440 | 303,100 | |||
Accumulated depreciation-equipment | (96,050) | (74,330) | |||
Total assets | $671,710 | $640,810 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $141,060 | $133,930 | |||
Mortgage note payable | 0 | 192,240 | |||
Common stock, $1 par | 21,000 | 13,000 | |||
Paid-in capital: Excess of issue price over par-common stock | 301,000 | 181,000 | |||
Retained earnings | 208,650 | 120,640 | |||
Total liabilities and stockholders equity | $671,710 | $640,810 |
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
- Net income, $225,310.
- Depreciation reported on the income statement, $46,880.
- Equipment was purchased at a cost of $91,500, and fully depreciated equipment costing $25,160 was discarded, with no salvage realized.
- The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
- 8,000 shares of common stock were issued at $16 for cash.
- Cash dividends declared and paid, $137,300.
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 out flows, cash payments, decreases in cash, or any negative adjustments.
Cash flows from operating activities: | ||
Common stockDepreciationInventoryNet incomePrepaid expensesRetained earnings | $- Select - | |
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Cash paid for dividendsDecrease in accounts receivableDepreciationIncrease in accounts receivableNet incomeRetained earnings | - Select - | |
Changes in current operating assets and liabilities: | ||
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoryDepreciationIncrease in accounts receivable | - Select - | |
Decrease in accounts payableDecrease in inventoryDecrease in prepaid expensesDepreciationIncrease in accounts receivableIncrease in inventory | - Select - | |
Decrease in accounts payableDecrease in inventoryDecrease in prepaid expensesIncrease in prepaid expenses | - Select - | |
Decrease in accounts payableDecrease in prepaid expensesDepreciationIncrease in accounts payableNet incomeRetained earnings | - Select - | |
Net cash flow from operating activities | $fill in the blank 13 | |
Cash flows from investing activities: | ||
Cash paid for common stockCash paid for equipmentCash paid for dividendsCash paid for inventoryCash paid for prepaid expensesCash paid to retire mortgage note | $- Select - | |
Net cash flow used for investing activities | fill in the blank 16 | |
Cash flows from financing activities: | ||
Cash received from customersCash received from depreciationCash received from dividendsCash received from net incomeCash received from retained earningsCash received from sale of common stock | $- Select - | |
Cash paid for accounts payableCash paid for common stockCash paid for dividendsCash paid for equipmentCash paid for inventoryCash paid for prepaid expenses | - Select - | |
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for inventoriesCash paid to retire mortgage note payable | - Select - | |
Net cash flow used for financing activities | fill in the blank 23 | |
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid for inventoriesChange in cash | $- Select - | |
Cash at the beginning of the year | fill in the blank 26 | |
Cash at the end of the year | $fill in the blank 27 |
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