The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2017, is...

Transcribed Image Text:

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2017, is as follows: Dec. 31, 20Y8 Dec. 31, 2017 Assets 3 Cash $80,000.00 $100,000.00 Accounts receivable (net) Inventories 6 Prepaid expenses 7 Equipment Accumulated depreciation-equipment 275,000.00 300,000.00 510,000.00 400,000.00 15,000.00 10,000.00 1,070,000.00 750,000.00 (200,000.00) (160,000.00) 9 Total assets $1,750,000.00 $1,400,000.00 10 Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) $100,000.00 $90,000,00 12 Mortgage note payable 0.00 400,000.00 13 Common stock, $10 par 600,000,00 200,000.00 Daid.in ranital Evcase of itsua nice over narcommon stock 300.000.00 100.000.00 Instructions Total assets $1,750,000.00 $1,400,000.00 10 Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) $100,000.00 $90,000.00 12 Mortgage note payable 0.00 400,000.00 13 Common stock, $10 par 600,000.00 200,000.00 Paid-in capital: Excess of issue price over par-common stock 300,000.00 100,000.00 11 Retained eamings 750,000,00 610,000.00 16 Total liabilities and stockholders' equity $1,750,000.00 $1,400,000.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: a. Net income, $190,000. b. Depreciation reported on the income statement, $115,000. c. Equipment was purchased at a cost of $395,000 and fully depreciated equipment costing $75,000 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. 40,000 shares of common stock were issued at $15 for cash. f. Cash dividends declared and paid, $50,000. I Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outflows as negative numbers using a minus sign Ad Labels and Amount Descriptions Labels and Amount Descriptions Cash paid for dividends Cash paid for equipment Cash paid for merchandise Cash paid for purchase of land Cash paid to retire mortgage note payable Cash received from customers Cash received from sale of common stock Change in cash December 31, 20Y8 Decrease in inventory Doorance in account novable. Ad Labels and Amount Descriptions Decrease in inventory Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid expenses Depreciation For the Year Ended December 31, 20Y8 Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventory in pranoid ouronnes X Ad Labels and Amount Descriptions Increase in prepaid expenses Loss on disposal of equipment Loss on sale of investments Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Net income Net loss Statement of Cash Flows Statement of Cash Flows (Label) 1 Cash flows from operating activities: 2 3 Adjustments to reconcile net income to net cash flow from operating activiti: 4 $ Changes in current operating assets and liabilities: 9 10 11 12 Cash flows from investing activities: 13 Labels and Amount Descriptions Statement of Cash Flows 10 11 12 Cash flows from investing activities: 13 14 15 16 Cash flows from financing activities: 17 18 19 20 21 22 Cash at the beginning of the year 25 Cash at the end of the year 000.00 200.000.00 The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 2017, is as follows: Dec. 31, 20Y8 Dec. 31, 2017 Assets 3 Cash $80,000.00 $100,000.00 Accounts receivable (net) Inventories 6 Prepaid expenses 7 Equipment Accumulated depreciation-equipment 275,000.00 300,000.00 510,000.00 400,000.00 15,000.00 10,000.00 1,070,000.00 750,000.00 (200,000.00) (160,000.00) 9 Total assets $1,750,000.00 $1,400,000.00 10 Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) $100,000.00 $90,000,00 12 Mortgage note payable 0.00 400,000.00 13 Common stock, $10 par 600,000,00 200,000.00 Daid.in ranital Evcase of itsua nice over narcommon stock 300.000.00 100.000.00 Instructions Total assets $1,750,000.00 $1,400,000.00 10 Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) $100,000.00 $90,000.00 12 Mortgage note payable 0.00 400,000.00 13 Common stock, $10 par 600,000.00 200,000.00 Paid-in capital: Excess of issue price over par-common stock 300,000.00 100,000.00 11 Retained eamings 750,000,00 610,000.00 16 Total liabilities and stockholders' equity $1,750,000.00 $1,400,000.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: a. Net income, $190,000. b. Depreciation reported on the income statement, $115,000. c. Equipment was purchased at a cost of $395,000 and fully depreciated equipment costing $75,000 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. 40,000 shares of common stock were issued at $15 for cash. f. Cash dividends declared and paid, $50,000. I Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outflows as negative numbers using a minus sign Ad Labels and Amount Descriptions Labels and Amount Descriptions Cash paid for dividends Cash paid for equipment Cash paid for merchandise Cash paid for purchase of land Cash paid to retire mortgage note payable Cash received from customers Cash received from sale of common stock Change in cash December 31, 20Y8 Decrease in inventory Doorance in account novable. Ad Labels and Amount Descriptions Decrease in inventory Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid expenses Depreciation For the Year Ended December 31, 20Y8 Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventory in pranoid ouronnes X Ad Labels and Amount Descriptions Increase in prepaid expenses Loss on disposal of equipment Loss on sale of investments Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Net income Net loss Statement of Cash Flows Statement of Cash Flows (Label) 1 Cash flows from operating activities: 2 3 Adjustments to reconcile net income to net cash flow from operating activiti: 4 $ Changes in current operating assets and liabilities: 9 10 11 12 Cash flows from investing activities: 13 Labels and Amount Descriptions Statement of Cash Flows 10 11 12 Cash flows from investing activities: 13 14 15 16 Cash flows from financing activities: 17 18 19 20 21 22 Cash at the beginning of the year 25 Cash at the end of the year 000.00 200.000.00