Statement of Cash Flows-Indirect Method 2. PR. 13-02.ALGO The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2048 and 2047, is as follows: Dec. 31, Dec. 31, 2018 2017 3. PR. 13-03.ALGO 4. PR.13-01. ALGO Assets Cash Accounts receivable (net) Inventories $51,070 78,470 112,090 $62,710 84,540 104,780 3,180 187,740 Prepaid expenses Equipment 4,570 228,350 Accumulated depreciation equipment (59,370) $415,180 (46,040) $396,910 Total assets 1. PR. 13-04.ALGO Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $87,190 $82,950 2. PR. 13-02.ALGO 0 119,070 Mortgage note payable Common stock, $1 par 3. PR. 13-03.ALGO 13,000 8,000 Paid-in capital: Excess of issue price over par-common stock 112,000 4. PR. 13-01.ALGO 197,000 117,990 Retained earnings 74,890 Total liabilities and stockholders' equity $415,180 $396,910 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, $110,340. b. Depreciation reported on the income statement, $28,910. c. Equipment was purchased at a cost of $56,190, and fully depreciated equipment costing $15,580 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. 5,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $67,240. Required: 1. PR. 13-04.ALGO 2. PR.13-02.ALGO Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. 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, 20Y8 Cash flows from operating activities: 3. PR.13-03.ALGO 4. PR. 13-01. ALGO Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year