Question Content Area

Statement of Cash Flows$$Indirect Method

The comparative balance sheet of Yellow Dog 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 $$60,160$ $$73,640$

Accounts receivable $($net$)92,43099,280$

Inventories $132,050123,040$

Prepaid expenses $5,3803,730$

Equipment $268,990220,460$

Accumulated depreciation$-$equipment $(69,940)(54,070)$

Total assets $$489,070$ $$466,080$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $$102,700$ $$97,410$

Mortgage note payable $0139,820$

Common stock, $$1$ par $16,00010,000$

Paid$-$in capital in excess of par$-$common stock $245,000131,000$

Retained earnings $125,37087,850$

Total liabilities and stockholders$$ equity $$489,070$ $$466,080$

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, $$96,050.$

Depreciation reported on the income statement, $$34,170.$

Equipment was purchased at a cost of $$66,830$ and fully depreciated equipment costing $$18,300$ 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 $$20$ for cash.

Cash dividends declared and paid, $$58,530.$

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 outflows, cash payments, decreases in cash, or any negative adjustments.

Yellow Dog Enterprises Inc.

Statement of Cash Flows

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

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

$$-$ Select $-$

Adjustments to reconcile net income to net cash flow from operating activities:

$-$ Select $-$

Changes in current operating assets and liabilities:

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

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

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

$$-$ Select $-$

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

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

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Net cash flow used for financing activities fill in the blank $23$

$$-$ Select $-$

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

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