Answered: For the Year Ended December 31, 20Y8…

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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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

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
December
December
31, 20Y8
31, 20Y7
Assets
Cash
Accounts receivable (net)
Inventories
Prepaid expenses
Equipment
Accumulated depreciation-equipment
Total assets
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
Mortgage note payable
Common stock, $1 par
Paid-in capital in excess of par-common stock
Retained earnings
Total liabilities and stockholders' equity
$49,240
75,650
108,080
4,400
220,160
(57,240)
$400,290
$84,060
0
13,000
183,000
120,230
$400,290
$60,530
81,600
101,130
3,060
181,200
(44,440)
$383,080
$80,060
114,920
8,000
108,000
72,100
$383,080
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
a. Net income, $123,210.
b. Depreciation reported on the income statement, $27,840.
c. Equipment was purchased at a cost of $54,000 and fully depreciated equipment costing $15,040 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. 5,000 shares of common stock were issued at $16 for cash.
f. 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
Cash flows from (used for) operating activities:
Adjustments 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:
Cash balance, January 1, 20Y8
Cash balance, December 31, 20Y8
Amount Amount
000 10 0000 00
$

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