The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:   Dec. 31, 20Y8 Dec. 31, 20Y7 Assets     Cash $77,230   $95,130   Accounts receivable (net) 118,660   128,250   Merchandise inventory 169,510   158,950   Prepaid expenses 6,910   4,820   Equipment 345,320   284,800   Accumulated depreciation-equipment (89,780)   (69,840)     Total assets $627,850   $602,110         Liabilities and Stockholders' Equity     Accounts payable (merchandise creditors) $131,850   $125,840   Mortgage note payable 0   180,630   Common stock, $1 par 21,000   13,000   Paid-in capital: Excess of issue price over par-common stock 306,000   170,000   Retained earnings 169,000   112,640     Total liabilities and stockholders’ equity $627,850   $602,110   Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net income, $144,280. Depreciation reported on the income statement, $43,580. Equipment was purchased at a cost of $84,160, and fully depreciated equipment costing $23,640 was discarded, with no salvage realized. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. 8,000 shares of common stock were issued at $18 for cash. Cash dividends declared and paid, $87,920. Required: Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

  Dec. 31, 20Y8 Dec. 31, 20Y7
Assets    
Cash $77,230   $95,130  
Accounts receivable (net) 118,660   128,250  
Merchandise inventory 169,510   158,950  
Prepaid expenses 6,910   4,820  
Equipment 345,320   284,800  
Accumulated depreciation-equipment (89,780)   (69,840)  
  Total assets $627,850   $602,110  
     
Liabilities and Stockholders' Equity    
Accounts payable (merchandise creditors) $131,850   $125,840  
Mortgage note payable 0   180,630  
Common stock, $1 par 21,000   13,000  
Paid-in capital: Excess of issue price over par-common stock 306,000   170,000  
Retained earnings 169,000   112,640  
  Total liabilities and stockholders’ equity $627,850   $602,110  

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

  1. Net income, $144,280.
  2. Depreciation reported on the income statement, $43,580.
  3. Equipment was purchased at a cost of $84,160, and fully depreciated equipment costing $23,640 was discarded, with no salvage realized.
  4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
  5. 8,000 shares of common stock were issued at $18 for cash.
  6. Cash dividends declared and paid, $87,920.

Required:

Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Statement of Cash Flows
For the Year Ended December 31, 20Y8
Cash flows from operating activities:
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 (used for) investing activities:
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Net cash flow used for financing activities
$
Cash at the beginning of the year
Transcribed Image Text:Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from operating activities: 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 (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities $ Cash at the beginning of the year
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