The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as
Question:
The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
Dec. 31, 20Y8 | Dec. 31, 20Y7 | ||||
Assets | |||||
Cash | $51,010 | $62,310 | |||
Accounts receivable (net) | 78,380 | 84,010 | |||
Merchandise inventory | 111,970 | 104,110 | |||
Prepaid expenses | 4,560 | 3,160 | |||
Equipment | 228,090 | 186,550 | |||
Accumulated depreciation-equipment | (59,300) | (45,750) | |||
Total assets | $414,710 | $394,390 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $87,090 | $82,430 | |||
Mortgage note payable | 0 | 118,320 | |||
Common stock, $1 par | 13,000 | 8,000 | |||
Excess of paid-in capital over par | 186,000 | 111,000 | |||
Retained earnings | 128,620 | 74,640 | |||
Total liabilities and stockholders’ equity | $414,710 | $394,390 |
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
Net income, $138,190.
Depreciation reported on the income statement, $29,030.
Equipment was purchased at a cost of $57,020, and fully depreciated equipment costing $15,480 was discarded, with no salvage realized.
The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
5,000 shares of common stock were issued at $16 for cash.
Cash dividends declared and paid, $84,210.
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.