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	$80,000.00	$100,000.00
4	Accounts receivable (net)	275,000.00	300,000.00
5	Inventories	510,000.00	400,000.00
6	Prepaid expenses	15,000.00	10,000.00
7	Equipment	1,070,000.00	750,000.00
8	Accumulated depreciation-equipment	(200,000.00)	(160,000.00)
9	Total assets	$1,750,000.00	$1,400,000.00
10	Liabilities and Stockholders Equity
11	Accounts payable (merchandise creditors)	$100,000.00	$90,000.00
12	Mortgage note payable	????0.00	400,000.00
13	Common stock, $10 par	600,000.00	200,000.00
14	Paid-in capital: Excess of issue price over parcommon stock	300,000.00	100,000.00
15	Retained earnings	750,000.00	610,000.00
16	Total liabilities and stockholders equity	$1,750,000.00	$1,400,000.00

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, $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.

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. Enter amounts that represent cash outflows as negative numbers using a minus sign.

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. Enter amounts that represent cash outflows as negative numbers using a minus sign.

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 investing activities:
13
14
15
16	Cash flows from financing activities:
17
18
19
20
21
22	Cash at the beginning of the year
23	Cash at the end of the year

Labels and Amount Descriptions

Cash paid for dividendsCash paid for equipmentCash paid for merchandiseCash paid for purchase of equipmentCash paid for purchase of landCash paid to retire mortgage note payableCash received from customersCash received from sale of common stockChange in cashDecember 31, 20Y8Decrease in inventoryDecrease in accounts payableDecrease in accounts receivableDecrease in prepaid expensesDepreciationFor the Year Ended December 31, 20Y8Gain on disposal of equipmentGain on sale of investmentsIncrease in accounts payableIncrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesLoss on disposal of equipmentLoss on sale of investmentsNet cash flow from financing activitiesNet cash flow from investing activitiesNet cash flow from operating activitiesNet cash flow used for financing activitiesNet cash flow used for investing activitiesNet cash flow used for operating activitiesNet incomeNet loss