Statement of cash flows-indirect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December...

 

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Statement of cash flows-indirect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Assets December 31, 2018 December 31, 2017 Cash $61,130 $74,750 Accounts receivable (net) 93,930 100,770 Inventories 134,170. 124,910 Prepaid expenses 5,470 3,780 Equipment 273,330 223,780 Accumulated depreciation-equipment (71,070) (54,880) Total assets $496,960 $473,110 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $104,360 $98,880 Mortgage note payable 0 141,930 Common stock, $1 par 16,000 10,000 Paid-in capital in excess of par-common stock 247,000 133,000 Retained earnings 129,600 89,300 Total liabilities and stockholders' equity $496,960 $473,110 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: a. Net income, $103,170. b. Depreciation reported on the income statement, $34,760. c. Equipment was purchased at a cost of $68,120 and fully depreciated equipment costing $18,570 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 6,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $62,870. 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. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 Line Item Description Amount Amount Cash flows from (used for) operating activities: Net income 103,170 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation 34,760 Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories 6,840 -9,260 Increase in prepaid expenses Increase in accounts payable -1,690 5,480 Net cash flows used for operating activities x 139,300 Cash flows from (used for) investing activities: Cash paid for equipment -68,120 -68,120 Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Cash paid to retire mortgage note payable 120,000 62,870 X -204,800 X Net cash flows used for financing activities Net decrease in cash Cash balance, January 1, 20Y8 Cash balance, December 31, 2018 -192,800 X -214,473 X 74,750 139,723 X Statement of cash flows-indirect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 2017, is as follows: Assets December 31, 2018 December 31, 2017 Cash $61,130 $74,750 Accounts receivable (net) 93,930 100,770 Inventories 134,170. 124,910 Prepaid expenses 5,470 3,780 Equipment 273,330 223,780 Accumulated depreciation-equipment (71,070) (54,880) Total assets $496,960 $473,110 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $104,360 $98,880 Mortgage note payable 0 141,930 Common stock, $1 par 16,000 10,000 Paid-in capital in excess of par-common stock 247,000 133,000 Retained earnings 129,600 89,300 Total liabilities and stockholders' equity $496,960 $473,110 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: a. Net income, $103,170. b. Depreciation reported on the income statement, $34,760. c. Equipment was purchased at a cost of $68,120 and fully depreciated equipment costing $18,570 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 6,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $62,870. 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. Yellow Dog Enterprises Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 Line Item Description Amount Amount Cash flows from (used for) operating activities: Net income 103,170 Adjustments to reconcile net income to net cash flows from (used for) operating activities: Depreciation 34,760 Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in inventories 6,840 -9,260 Increase in prepaid expenses Increase in accounts payable -1,690 5,480 Net cash flows used for operating activities x 139,300 Cash flows from (used for) investing activities: Cash paid for equipment -68,120 -68,120 Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Cash paid to retire mortgage note payable 120,000 62,870 X -204,800 X Net cash flows used for financing activities Net decrease in cash Cash balance, January 1, 20Y8 Cash balance, December 31, 2018 -192,800 X -214,473 X 74,750 139,723 X

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Statement of Cash flows for the year ended 31st Dec 20Y8 Particulars A Cash flow from o... View the full answer