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 $$63,550$ $$77,720$

Accounts receivable $($net$)97,650104,770$

Merchandise inventory $139,520129,860$

Prepaid expenses $5,6803,940$

Equipment $284,180232,660$

Accumulated depreciation$-$equipment $(73,890)(57,060)$

Total assets $$516,690$ $$491,890$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $$108,500$ $$102,810$

Mortgage note payable $0147,570$

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

Paid$-$in capital: Excess of issue price over par$-$common stock $229,000139,000$

Retained earnings $163,19092,510$

Total liabilities and stockholders$$ equity $$516,690$ $$491,890$

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, $$180,940.$

Depreciation reported on the income statement, $$36,140.$

Equipment was purchased at a cost of $$70,830,$ and fully depreciated equipment costing $$19,310$ 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 $$16$ for cash.

Cash dividends declared and paid, $$110,260.$

Required:

Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash out flows, 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 operating activities: blank

Net income

$Net income

$180,940$

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

Depreciation

Depreciation

$36,140$

Changes in current operating assets and liabilities: blank

Decrease in accounts receivable

Decrease in accounts receivable

$7,120$

Increase in merchandise inventory

Increase in merchandise inventory

$9,660$

Increase in prepaid expenses

Increase in prepaid expenses

Increase in accounts payable

Increase in accounts payable

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

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

Cash used for equipment

$Cash used for equipment

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

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

Cash received from dividends

$Cash received from dividends

Cash paid for common stock

Cash paid for common stock

Cash used to retire mortgage note payable

Cash used to retire mortgage note payable

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

blank $$-$ Select $-$

Cash at the beginning of the year blank fill in the blank $26$

Cash at the end of the year blank $fill in the blank $27$