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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:

Line Item Description	December 31, 20Y8	December 31, 20Y7
Assets
Cash	$82,800	$101,150
Accounts receivable (net)	127,230	136,360
Inventories	181,760	169,000
Prepaid expenses	7,400	5,120
Equipment	370,240	302,810
Accumulated depreciation-equipment	(96,260)	(74,260)
Total assets	$673,170	$640,180
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$141,370	$133,800
Mortgage note payable	0	192,050
Common stock, $1 par	21,000	13,000
Paid-in capital in excess of par-common stock	333,000	181,000
Retained earnings	177,800	120,330
Total liabilities and stockholders equity	$673,170	$640,180

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

1. Net income, $147,120.
2. Depreciation reported on the income statement, $47,130.
3. Equipment was purchased at a cost of $92,560 and fully depreciated equipment costing $25,130 was discarded, with no salvage realized.
4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
5. 8,000 shares of common stock were issued at $20 for cash.
6. Cash dividends declared and paid, $89,650.

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.

Line Item Description	Amount	Amount
Cash flows from (used for) operating activities:	blank
Common stockDepreciationNet incomePrepaid expensesRetained earnings	$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
Cash paid for dividendsDecrease in accounts receivableDepreciationIncrease in accounts receivableRetained earnings	- Select -
Changes in current operating assets and liabilities:
Decrease in accounts payableDecrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivable	- Select -
Decrease in accounts payableDecrease in inventoriesDecrease in prepaid expensesIncrease in accounts receivableIncrease in inventories	- Select -
Decrease in accounts payableDecrease in inventoriesDecrease in prepaid expensesIncrease in prepaid expensesLoss on sale of investments	- Select -
Decrease in accounts payableDecrease in prepaid expensesIncrease in accounts payableNet incomeRetained earnings	- Select -
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows from operating activitiesNet cash flows used for investing activitiesNet cash flows used for operating activities		$- Select -
Cash flows from (used for) investing activities:
Cash paid for common stockCash paid for equipmentCash paid for inventoriesCash paid for prepaid expensesCash paid to retire mortgage note	$- Select -
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows used for financing activitiesNet cash flows used for investing activitiesNet cash flows used for operating activities		- Select -
Cash flows from (used for) financing activities:
Cash received from customersCash received from depreciationCash received from dividendsCash received from retained earningsCash received from sale of common stock	$- Select -
Cash paid for accounts payableCash paid for common stockCash paid for dividendsCash paid for equipmentCash paid for prepaid expenses	- Select -
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for common stockCash paid for depreciationCash paid to retire mortgage note payable	- Select -
Net cash flows from financing activitiesNet cash flows from investing activitiesNet cash flows used for financing activitiesNet cash flows used for investing activitiesNet cash flows used for operating activities		- Select -
Cash paid for accounts payableCash paid for accumulated depreciationCash paid for inventoriesNet increase in cashNet decrease in cash		$- Select -
Cash balance, January 1, 20Y8		Cash balance, January 1, 20Y8
Cash balance, December 31, 20Y8		$Cash balance, December 31, 20Y8