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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 Cash Assets Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity $83,040 127,600 182,280 7,430 371,320 (96,540) $675,130 Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity 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, $185,470. b. Depreciation reported on the income statement, $47,010. c. Equipment was purchased at a cost of $91,380, and fully depreciated equipment costing $25,340 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. 8,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $113,020. $141,780 0 $101,980 137,470 170,400 5,160 305,280 (74,870) $645,420 22,000 318,000 193,350 $675,130 $134,890 193,630 14,000 182,000 120,900 $645,420

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 Cash Assets Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity $83,040 127,600 182,280 7,430 371,320 (96,540) $675,130 Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity 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, $185,470. b. Depreciation reported on the income statement, $47,010. c. Equipment was purchased at a cost of $91,380, and fully depreciated equipment costing $25,340 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. 8,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $113,020. $141,780 0 $101,980 137,470 170,400 5,160 305,280 (74,870) $645,420 22,000 318,000 193,350 $675,130 $134,890 193,630 14,000 182,000 120,900 $645,420

FINANCIAL ACCOUNTING
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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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. 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: Depreciation expense Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash used for equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Cash used to retire mortgage note payable Net cash flow used for financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year 0000 QOO DUQ
Transcribed Image Text: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. 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: Depreciation expense Changes in current operating assets and liabilities: Decrease in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Increase in accounts payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash used for equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from sale of common stock Cash used for dividends Cash used to retire mortgage note payable Net cash flow used for financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year 0000 QOO DUQ
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, Dec. 31, 20Y8 20Y7 Cash Accounts receivable (net) Merchandise inventory Assets Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par $83,040 127,600 182,280 7,430 371,320 (96,540) $675,130 Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity $141,780 0 $101,980 137,470 170,400 5,160 305,280 (74,870) $645,420 $134,890 193,630 14,000 182,000 120,900 $645,420 22,000 318,000 193,350 $675,130 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, $185,470. b. Depreciation reported on the income statement, $47,010. c. Equipment was purchased at a cost of $91,380, and fully depreciated equipment costing $25,340 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. 8,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $113,020.
Transcribed Image Text: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, Dec. 31, 20Y8 20Y7 Cash Accounts receivable (net) Merchandise inventory Assets Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par $83,040 127,600 182,280 7,430 371,320 (96,540) $675,130 Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity $141,780 0 $101,980 137,470 170,400 5,160 305,280 (74,870) $645,420 $134,890 193,630 14,000 182,000 120,900 $645,420 22,000 318,000 193,350 $675,130 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, $185,470. b. Depreciation reported on the income statement, $47,010. c. Equipment was purchased at a cost of $91,380, and fully depreciated equipment costing $25,340 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. 8,000 shares of common stock were issued at $18 for cash. f. Cash dividends declared and paid, $113,020.
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