Statement of cash flows - indirect method

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 Equipmentwaspurchasedatacostof$395,000 and fully depreciated equipment costing $75,000 was discarded, with no salvage realized.

D Themortgagenotepayablewasnotdueforsix 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 of presenting cash flows from operating activities.

Statement of cash flows-indirect 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 $ 80,000 275,000 510,000 15,000 1,070,000 (200,000 $1,750,000 100,000 300,000 400,000 10,000 50,000 (160,000) $1,400,000 Liabilities and Stockholders' Equity 0 600,000 300,000 750,000 400,000 200,000 100,000 610,000 $1,400,000 Paid-in capital: Excess of issue price over par-common stock