The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is...

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The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, Dec. 31, 20Y8 2017 Assets Cash $68,520 $83,970 Accounts receivable (net) 105,290 113,200 Inventories 150,400 140,300 Prepaid expenses 6,130 4,250 Equipment 306,390 251,370 Accumulated depreciation-equipment (79,660) (61,650) Total assets $557,070 $531,440 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $116.980 $111,070 Mortgage note payable 0 159,430 Common stock, $1 par 18,000 11,000 Paid-le capital: Excess of issue price over par-common stock 255,000 150.000 Retained earnings 167.090 99,940 YOU mo payauie meruianuse reunio 400 Mortgage note payable. 0 159,430 Common stock, $1 par 18,000 11,000 Paid in capital: Excess of issue price over par-common stock 255,000 150,000 Retained earnings 167,090 99,940 Total liabilities and stockholders' equity $557,070 $531,440 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, $171,900.. b. Depreciation reported on the income statement, $38,870. c. Equipment was purchased at a cost of $75,880, and fully depreciated equipment costing $20,860 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. 7,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $104,750. Required: 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, 2018 Cash flows from operating activities: Depreciation X Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Depreciation X Adjustments to reconcile net income to net cash flow from operating activities: Decrease in accounts receivable x Changes in current operating assets and liabilities: Decrease in accounts receivable ✓ Decrease in inventory x Decrease in inventory X Decrease in prepaid expenses X Net cash flow from operating activities Cash flows from investing activities: Cash paid for equipment ✔ Net cash flow used for investing activities Cash flows from financing activities: Cash received from depreciation X Cash paid for common stock x Cash paid for accumulated depreciation X 2 000 10 0000 00 Net cash flow used for financing activities Cash paid for accumulated depreciation x Cash at the beginning of the year Cash at the end of the year The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, Dec. 31, 20Y8 2017 Assets Cash $68,520 $83,970 Accounts receivable (net) 105,290 113,200 Inventories 150,400 140,300 Prepaid expenses 6,130 4,250 Equipment 306,390 251,370 Accumulated depreciation-equipment (79,660) (61,650) Total assets $557,070 $531,440 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $116.980 $111,070 Mortgage note payable 0 159,430 Common stock, $1 par 18,000 11,000 Paid-le capital: Excess of issue price over par-common stock 255,000 150.000 Retained earnings 167.090 99,940 YOU mo payauie meruianuse reunio 400 Mortgage note payable. 0 159,430 Common stock, $1 par 18,000 11,000 Paid in capital: Excess of issue price over par-common stock 255,000 150,000 Retained earnings 167,090 99,940 Total liabilities and stockholders' equity $557,070 $531,440 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, $171,900.. b. Depreciation reported on the income statement, $38,870. c. Equipment was purchased at a cost of $75,880, and fully depreciated equipment costing $20,860 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. 7,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $104,750. Required: 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, 2018 Cash flows from operating activities: Depreciation X Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Depreciation X Adjustments to reconcile net income to net cash flow from operating activities: Decrease in accounts receivable x Changes in current operating assets and liabilities: Decrease in accounts receivable ✓ Decrease in inventory x Decrease in inventory X Decrease in prepaid expenses X Net cash flow from operating activities Cash flows from investing activities: Cash paid for equipment ✔ Net cash flow used for investing activities Cash flows from financing activities: Cash received from depreciation X Cash paid for common stock x Cash paid for accumulated depreciation X 2 000 10 0000 00 Net cash flow used for financing activities Cash paid for accumulated depreciation x Cash at the beginning of the year Cash at the end of the year

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Cash flow statement using indirect method Particulars Amount Net income ... View the full answer