Statement of Cash Flows—Indirect MethodThe comparative balance sheet of Yellow Dog Enterprises Inc. atDecember...Statement...

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Statement of Cash Flows—Indirect Method
The comparative balance sheet of Yellow Dog Enterprises Inc. atDecember 31, 20Y8 and 20Y7, is as follows:
Dec. 31, 20Y8 Dec. 31, 20Y7
Assets
Cash $52,120 $64,070
Accounts receivable (net) 80,090 86,380
Merchandise inventory 114,400 107,060
Prepaid expenses 4,660 3,240
Equipment 233,060 191,810
Accumulated depreciation-equipment (60,590) (47,040)
Total assets $423,740 $405,520
Liabilities and Stockholders'Equity
Accounts payable (merchandise creditors) $88,990 $84,750
Mortgage note payable 0 121,660
Common stock, $1 par 14,000 9,000
Paid-in capital: Excess of issue price overpar-common stock 199,000 114,000
Retained earnings 121,750 76,110
Total liabilities and stockholders’ equity $423,740 $405,520
Additional data obtained from the income statement and from anexamination of the accounts in the ledger for 20Y8 are asfollows:
Net income, $116,840.
Depreciation reported on the income statement, $29,470.
Equipment was purchased at a cost of $57,170, and fullydepreciated equipment costing $15,920 was discarded, with nosalvage realized.
The mortgage note payable was not due for six years, but theterms permitted earlier payment without penalty.
5,000 shares of common stock were issued at $18 for cash.
Cash dividends declared and paid, $71,200.
Required:
Prepare a statement of cash flows, using the indirect method.Use the minus sign to indicate cash out flows, cash payments,decreases in cash, or any negative adjustments.
Yellow Dog Enterprises Inc.
Statement of Cash Flows
Forthe Year Ended December 31, 20Y8
Cash flows from operating activities:
$
Adjustments to reconcile net income to netcash flow from operating activities:
Changes in current operating assets andliabilities:
Net cash flow from operatingactivities $
Cash flows from (used for) investingactivities:
$
Net cash flow used for investingactivities
Cash flows from (used for) financingactivities:
$
Net cash flow used for financingactivities
$
Cash at the beginning of the year
Cash at the end of the year $

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4.1 Ratings (754 Votes)

Yellow Dog Enterprises Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y8
Cash flows from operating activities:
Net Income:	$116,840.00
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation	$29,470.00
Changes in current operating assets and liabilities:
Decrease in accounts receivable	$6,290.00
Increase in inventory	-$7,340.00
Increase in prepaid expenses	-$1,420.00
Increase in accounts payable	$4,240.00
Net cash flow from operating activities		$148,080.00
Cash flows from investing activities:
Cash paid for Equipment	-$57,170.00
Net cash flow used for investing activities		-$57,170.00
Cash flows from financing activities:
Cash Received from sale of Common stock	$90,000.00
Cash paid for dividends	-$71,200.00
Cash paid to retire mortgage note payable	-$121,660.00
Net cash flow used for financing activities		-$102,860.00
Change in cash		-$11,950.00
Cash at the beginning of the year		$64,070.00
Cash at the end of the year		$52,120.00

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In: AccountingStatement of Cash Flows—Indirect MethodThe comparative balance sheet of Yellow Dog Enterprises Inc. atDecember...Statement of Cash Flows—Indirect MethodThe comparative balance sheet of Yellow Dog Enterprises Inc. atDecember 31, 20Y8 and 20Y7, is as follows:Dec. 31, 20Y8Dec. 31, 20Y7AssetsCash$52,120$64,070Accounts receivable (net)80,09086,380Merchandise inventory114,400107,060Prepaid expenses4,6603,240Equipment233,060191,810Accumulated depreciation-equipment(60,590)(47,040)Total assets$423,740$405,520Liabilities and Stockholders'EquityAccounts payable (merchandise creditors)$88,990$84,750Mortgage note payable0121,660Common stock, $1 par14,0009,000Paid-in capital: Excess of issue price overpar-common stock199,000114,000Retained earnings121,75076,110Total liabilities and stockholders’ equity$423,740$405,520Additional data obtained from the income statement and from anexamination of the accounts in the ledger for 20Y8 are asfollows:Net income, $116,840.Depreciation reported on the income statement, $29,470.Equipment was purchased at a cost of $57,170, and fullydepreciated equipment costing $15,920 was discarded, with nosalvage realized.The mortgage note payable was not due for six years, but theterms permitted earlier payment without penalty.5,000 shares of common stock were issued at $18 for cash.Cash dividends declared and paid, $71,200.Required:Prepare a statement of cash flows, using the indirect method.Use the minus sign to indicate cash out flows, cash payments,decreases in cash, or any negative adjustments.Yellow Dog Enterprises Inc.Statement of Cash FlowsForthe Year Ended December 31, 20Y8Cash flows from operating activities:$Adjustments to reconcile net income to netcash flow from operating activities:Changes in current operating assets andliabilities:Net cash flow from operatingactivities$Cash flows from (used for) investingactivities:$Net cash flow used for investingactivitiesCash flows from (used for) financingactivities:$Net cash flow used for financingactivities$Cash at the beginning of the yearCash at the end of the year$

		Dec. 31, 20Y8	Dec. 31, 20Y7
Assets
Cash		$52,120	$64,070
Accounts receivable (net)		80,090	86,380
Merchandise inventory		114,400	107,060
Prepaid expenses		4,660	3,240
Equipment		233,060	191,810
Accumulated depreciation-equipment		(60,590)	(47,040)
	Total assets	$423,740	$405,520

Liabilities and Stockholders'Equity
Accounts payable (merchandise creditors)		$88,990	$84,750
Mortgage note payable		0	121,660
Common stock, $1 par		14,000	9,000
Paid-in capital: Excess of issue price overpar-common stock		199,000	114,000
Retained earnings		121,750	76,110
	Total liabilities and stockholders’ equity	$423,740	$405,520

Yellow Dog Enterprises Inc.
Statement of Cash Flows
Forthe Year Ended December 31, 20Y8
Cash flows from operating activities:
	$
Adjustments to reconcile net income to netcash flow from operating activities:

Changes in current operating assets andliabilities:




Net cash flow from operatingactivities		$
Cash flows from (used for) investingactivities:
	$
Net cash flow used for investingactivities
Cash flows from (used for) financingactivities:
	$


Net cash flow used for financingactivities
		$
Cash at the beginning of the year
Cash at the end of the year		$