70.2K

Verified Solution

Link Copied!

Additional data obtained from the income statement and from an examination of the accounts in the ledget for 20Y8 are as follows: a. Net income, $250,000 b. Depreciation reported on the income statement, $135,000. c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penarty. e. 30,000 shares of common stock were issued at $20 for cash. f. Cash dividends daclared and paid, $45,000. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used fou operatiog activites Labels Cash flows from (used for) operating activities Cash flows from (used for) investing activities Cash flows from (used for) financing activities December 31,20Y8 For the Year Ended December 31, 20 Y8 Amount Descriptions Cash paid for dividends Cash paid for equipment Cash paid for merchandise Cash paid for purchase of land Cash paid to retire mortgage note payable Cash received from customers Cash received from sale of common stock Cash balance, January 1, 20 Y8 Cash balance, December 31, 20 Y8 Decrease in inventories Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid expenses Depreciation Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventories Increase in prepaid expenses Loss on disposal of equipment Loss on sale of investments Net cash flows from financing activities Net cash flows from investing activities Net cash flows from operating activities Net cash flows used for financing activities Net cash flows used for investing activities Net cash flows used for operating activities Net decrease in cash Net income Net increase in cash Net loss Yellow Dog Enterprises Inc. Statement of Cash Flows

Answer & Explanation Solved by verified expert

See Answer