Question

posting same question for second times don't want any wrong answer or half complete

Statement of Cash Flows—Indirect Method

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		$73,750		$90,850
Accounts receivable (net)		113,320		122,480
Merchandise inventory		161,890		151,810
Prepaid expenses		6,600		4,600
Equipment		329,780		271,980
Accumulated depreciation-equipment		(85,740)		(66,700)
	Total assets	$599,600		$575,020
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$125,920		$120,180
Mortgage note payable		0		172,510
Common stock, $1 par		19,000		12,000
Paid-in capital: Excess of issue price over par-common stock		281,000		162,000
Retained earnings		173,680		108,330
	Total liabilities and stockholders’ equity	$599,600		$575,020

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

Net income, $167,300.

Depreciation reported on the income statement, $41,610.

Equipment was purchased at a cost of $80,370, and fully depreciated equipment costing $22,570 was discarded, with no salvage realized.

The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.

7,000 shares of common stock were issued at $18 for cash.

Cash dividends declared and paid, $101,950.

Required:

Prepare a statement of cash flows, using the indirect method. 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, 20Y8
Cash flows from operating activities:
Net income	$
Adjustments to reconcile net income to net cash flow from operating activities:
Decrease in accounts receivable
Changes in current operating assets and liabilities:
Decrease in accounts payable
Increase in merchandise inventory
Increase in prepaid expenses
Depreciation
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
Cash at the end of the year		$

Answer 1

Yellow Dog Enterprises Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y8
Cash flows from operating activities:
Net income	$ 167,300.00
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation	$ 41,610.00
Changes in current operating assets and liabilities:
Decrease in accounts receivable	$ 9,160.00
Increase in merchandise inventory	-$ 10,080.00
Increase in prepaid expenses	-$ 2,000.00
Increase in accounts payable	$ 5,740.00
		$ 211,730.00
Cash flows from (used for) investing activities:
Purchase of equipment	-$ 80,370.00
Net cash flow used for investing activities		-$ 80,370.00
Cash flows from (used for) financing activities:
Repayment of mortgage note payable	-$ 172,510.00
Issue of common stock shares (7,000 shares*$18)	$ 126,000.00
Payment of dividend	-$ 101,950.00
Net cash flow used for financing activities		-$ 148,460.00
		-$ 17,100.00
Cash at the beginning of the year		$ 90,850.00
Cash at the end of the year		$ 73,750.00