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Statement of Cash Flows

The comparative balance sheet of Orange Angel Enterprises Inc. at December $31,20$Y$8$ and $20$Y$7,$ is as follows:

Dec. $31,20$Y$8$ Dec. $31,20$Y$7$

Assets

Cash $$65,110$ $$79,870$

Accounts receivable $($net$)100,040107,670$

Merchandise inventory $142,910133,460$

Prepaid expenses $5,8204,040$

Equipment $291,130239,100$

Accumulated depreciation$-$equipment $(75,690)(58,640)$

Total assets $$529,320$ $$505,500$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $$111,160$ $$105,650$

Mortgage note payable $0151,650$

Common stock, $$1$ par $18,00011,000$

Excess of paid$-$in capital over par $248,000143,000$

Retained earnings $152,16094,200$

Total liabilities and stockholders$$ equity $$529,320$ $$505,500$

Additional data obtained from the income statement and from an examination of the accounts in the ledger for $20$Y$8$ are as follows:

Net income, $$148,380.$

Depreciation reported on the income statement, $$36,900.$

Equipment was purchased at a cost of $$71,880,$ and fully depreciated equipment costing $$19,850$ was discarded, with no salvage realized.

The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.

$7,000$ shares of common stock were issued at $$16$ for cash.

Cash dividends declared and paid, $$90,420.$

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from $($used for$)$ operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Orange Angel Enterprises Inc.

Statement of Cash Flows

For the Year Ended December $31,20$Y$8$

Cash flows from $($used for$)$ operating activities: blank

Net income

$Net income

Adjustments to reconcile net income to net cash flows from $($used for$)$ operating activities: blank

Depreciation

Depreciation

Changes in current operating assets and liabilities: blank

Decrease in accounts receivable

Decrease in accounts receivable

Increase in merchandise inventory

Increase in merchandise inventory

Increase in prepaid expenses

Increase in prepaid expenses

Increase in accounts payable

Increase in accounts payable

Net cash flows from operating activities blank $fill in the blank $13$

Cash flows from $($used for$)$ investing activities: blank

Cash paid for equipment

$Cash paid for equipment

Net cash flows used for investing activities blank fill in the blank $16$

Cash flows from $($used for$)$ financing activities: blank

Cash received from issuing common stock

$Cash received from issuing common stock

Cash dividends

Cash dividends

Cash paid to retire mortgage note payable

Cash paid to retire mortgage note payable

Net cash flows from financing activities blank fill in the blank $23$

Net decrease in cash

blank $Net decrease in cash

Cash balance, January $1,20$Y$8$ blank fill in the blank $26$

Cash balance, December $31,20$Y$8$ blank $fill in the blank $27$