For the Year Ended December 31, 20Y8 ine Item Description Cash flows from (used for) operating activities: djustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Cash flows from (used for) investing activities: Cash flows from (used for) financing activities: 100 0000 0000 Amount
For the Year Ended December 31, 20Y8 ine Item Description Cash flows from (used for) operating activities: djustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Cash flows from (used for) investing activities: Cash flows from (used for) financing activities: 100 0000 0000 Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
Line Item Description December 31, 20Y8 December 31, 20Y7
Assets
Cash $49,240 $60,530
Accounts receivable (net) 75,650 81,600
Inventories 108,080 101,130
Prepaid expenses 4,400 3,060
Equipment 220,160 181,200
Accumulated depreciation -equipment (57,240) (44,440)
Total assets $400,290 $383,080
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $84,060 $80,060
Mortgage note payable 0 114,920
Common stock, $1 par 13,000 8,000
Paid-in capital in excess of par-common stock 183,000 108,000
Retained earnings 120,230 72,100
Total liabilities and stockholders’ equity $400,290 $383,080
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
Net income, $123,210.
Depreciation reported on the income statement, $27,840.
Equipment was purchased at a cost of $54,000 and fully depreciated equipment costing $15,040 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, $75,080.
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.
Yellow Dog Enterprises Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y8
Line Item Description Amount Amount
Cash flows from (used for) operating activities: blank
$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:
- Select -
Changes in current operating assets and liabilities:
- Select -
- Select -
- Select -
- Select -
$- Select -
Cash flows from (used for) investing activities:
$- Select -
- Select -
Cash flows from (used for) financing activities:
$- Select -
- Select -
- Select -
- Select -
$- Select -
Cash balance, January 1, 20Y8 Cash balance, January 1, 20Y8
Cash balance, December 31, 20Y8 $Cash balance, December 31, 20Y8
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