m PR 16-2A Statement of cash flows-indirect method OBJ. 2 The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2010 am 20Y7, is as follows: Dec 31, 2018 Dec 31, 2047 Assets Cash ........ $ 80,000 $ 100,000 Accounts receivable (net).. 275,000 300,000 Merchandise inventory .............. 510,000 400,000 Prepaid expenses .......... 15,000 10,000 Equipment. 1,070,000 750,000 Accumulated depreciation-equipment...... (200,000) (160,000) Total assets $1,750,000 $1,400,000 Dec 31, 20Y8 Dec. 31, 2017 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) ..... ........ $ 100,000 $ 90,000 Mortgage note payable............. 400,000 Common stock, $10 par......................... 600,000 200,000 Paid-in capital: Excess of issue price over par-common stock..... 300,000 100,000 Retained earnings......... 750,000 610,000 Total liabilities and stockholders' equity.......... $1,750,000 $1,400,000 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $190,000. b. Depreciation reported on the income statement, $115,000. c. Equipment was purchased at a cost of $395,000, and fully depreciated equipment costing $75,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 40,000 shares of common stock were issued at $15 for cash. f. Cash dividends declared and paid, $50,000. Instructions Prepare a statement of cash flows, using the indirect method