The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

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
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.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

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Dec. 31, 20Y8 Dec. 31, 20Y7 Assets 275,000 510,000 15,000 1,070,000 300,000 400,000 10,000 750,000 (200,000 (160,000) Liabilities and Stockholders'Equity 0 600,000 300,000 750,000 400,000 200,000 100,000 610,000 Paid-in capital Excess of issue price over par-common stock. . . . .