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Statement of Cash FlowsIndirect Method

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

Dec. 31, 20Y8 Dec. 31, 20Y7 Assets Cash $61,880 $76,070 Accounts receivable (net) 95,080 102,550 Inventories 135,830 127,100 Prepaid expenses 5,530 3,850 Equipment 276,690 227,720 Accumulated depreciation-equipment (71,940) (55,850) Total assets $503,070 $481,440 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $105,640 $100,620 Mortgage note payable 0 144,430 Common stock, $1 par 16,000 10,000 Paid-in capital: Excess of issue price over par-common stock 226,000 136,000 Retained earnings 155,430 90,390 Total liabilities and stockholders equity $503,070 $481,440

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

Net income, $166,500. Depreciation reported on the income statement, $34,990. Equipment was purchased at a cost of $67,870, and fully depreciated equipment costing $18,900 was discarded, with no salvage realized. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. 6,000 shares of common stock were issued at $16 for cash. Cash dividends declared and paid, $101,460.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. 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 For the Year Ended December 31, 20Y8 Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ Cash flows from investing activities: $ Net cash flow used for investing activities Cash flows from financing activities: $ Net cash flow used for financing activities $ Cash at the beginning of the year Cash at the end of the year $

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