Statement of Cash Flows—Indirect MethodThe comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, 20Y8Dec. 31, 20Y7Assets Cash$75,010 $92,310 Accounts receivable (net)115,260 124,440 Inventories164,660 154,240 Prepaid expenses6,710 4,670 Equipment335,420 276,350 Accumulated depreciation-equipment(87,210) (67,770) Total assets$609,850 $584,240 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors)$128,070 $122,110 Mortgage note payable0 175,270 Common stock, $1 par19,000 12,000 Paid-in capital in excess of par-common stock284,000 165,000 Retained earnings178,780 109,860 Total liabilities and stockholders’ equity$609,850 $584,240 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:Net income, $176,440.Depreciation reported on the income statement, $42,380.Equipment was purchased at a cost of $82,010 and fully depreciated equipment costing $22,940 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, $107,520.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 outflows, cash payments, decreases in cash, or any negative adjustments.Yellow Dog Enterprises Inc.Statement of Cash FlowsFor the Year Ended December 31, 20Y8Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flow from operating activities: - Select - Changes in current operating assets and liabilities: - Select - - Select - - Select - - Select - Net cash flow from operating activities $fill in the blank 13Cash flows from (used for) investing activities: $- Select - Net cash flow used for investing activities fill in the blank 16Cash flows from (used for) financing activities: $- Select - - Select - - Select - Net cash flow used for financing activities fill in the blank 23 $- Select -Cash balance, January 1, 20Y8 fill in the blank 26Cash balance, December 31, 20Y8 $fill in the blank 27

Cash Flow Statement: It is statement of inflows and outflows from three cash generated activities,…

Answered: $75,010 $92,310 Acco

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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	$75,010		$92,310
Accounts receivable (net)	115,260		124,440
Inventories	164,660		154,240
Prepaid expenses	6,710		4,670
Equipment	335,420		276,350
Accumulated depreciation-equipment	(87,210)		(67,770)
	Total assets	$609,850		$584,240

Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$128,070		$122,110
Mortgage note payable	0		175,270
Common stock, $1 par	19,000		12,000
Paid-in capital in excess of par-common stock	284,000		165,000
Retained earnings	178,780		109,860
	Total liabilities and stockholders’ equity	$609,850		$584,240

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

Net income, $176,440.
Depreciation reported on the income statement, $42,380.
Equipment was purchased at a cost of $82,010 and fully depreciated equipment costing $22,940 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, $107,520.

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 outflows, cash payments, decreases in cash, or any negative adjustments.

Yellow Dog Enterprises Inc.Statement of Cash FlowsFor the Year Ended December 31, 20Y8

Cash flows from (used for) operating activities:
	$- Select -
Adjustments to reconcile net income to net cash flow from operating activities:
	- Select -
Changes in current operating assets and liabilities:
	- Select -
	- Select -
	- Select -
	- Select -
Net cash flow from operating activities		$fill in the blank 13
Cash flows from (used for) investing activities:
	$- Select -
Net cash flow used for investing activities		fill in the blank 16
Cash flows from (used for) financing activities:
	$- Select -
	- Select -
	- Select -
Net cash flow used for financing activities		fill in the blank 23
		$- Select -
Cash balance, January 1, 20Y8		fill in the blank 26
Cash balance, December 31, 20Y8		$fill in the blank 27

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