Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 2048 Cash flows from operating activities: Net income 129,890 28,360 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 merchandise inventory 5,680 -7,450 Increase in prepaid expenses -1,380 Increase in accounts payable 1,400 100,280 X Net cash flow from operating activities Cash flows from (used for) investing activities: Cash used for equipment -55,480 -55,450 Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock 80,000 Cash used for dividends -79,150 Cacher retirementable LLL Changes in Current Operating Assets and Liabilities--Indirect Method Covington Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $22,900 $20,100 Inventory 52,400 59,500 Accounts payable 18,600 23,600 Dividends payable 29,000 27,000 Adjust net income of $123,300 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $ 122,600