The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8Dec. 31, 20Y72Assets 3Cash$95,000.00$110,000.004Accounts receivable (net)260,000.00280,000.005Inventories520,000.00450,000.006Prepaid expenses15,000.005,000.007Equipment1,130,000.00800,000.008Accumulated depreciation-equipment(235,000.00)(190,000.00)9Total assets$1,785,000.00$1,455,000.0010Liabilities and Stockholders’ Equity 11Accounts payable (merchandise creditors)$100,000.00$75,000.0012Mortgage note payable 0.00500,000.0013Common stock, $10 par500,000.00200,000.0014Paid-in capital in excess of par—common stock400,000.00100,000.0015Retained earnings785,000.00580,000.0016Total liabilities and stockholders’ equity$1,785,000.00$1,455,000.00 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, $250,000. b. Depreciation reported on the income statement, $135,000. c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 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. 30,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $45,000. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Labels and Amount Descriptions Cash paid for dividends Cash paid for equipment Cash paid for merchandise Cash paid for purchase of land Cash paid to retire mortgage note payable Cash received from customers Cash received from sale of common stock December 31, 20Y8 Decrease in inventories Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid expenses Depreciation For the Year Ended December 31, 20Y8 Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventories Increase in prepaid expenses Loss on disposal of equipment Loss on sale of investments Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Net decrease in cash Net income Net increase in cash Net lossPrepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash FlowsPrepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording ofthe answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negativeadjustments.1 Cash flows from (used for) operating activities:Net incomeAdjustments to reconcile net income to net cash flow from operating activities:DepreciationChanges in current operating assets and liabilities:Loss on disposal of equipmentDecrease in inventories23456Yellow Dog Enterprises Inc.Statement of Cash Flows(Label)7✓$250,000.00135,000.000.0070,000.00Shaded cells have feedback.Score: 40/149 Statement of Cash Flows9101112 Cash flows from (used for) investing activities:13141516 Cash flows from (used for) financing activities:17Cash paid for dividendsCash paid for purchase of common stockCash paid to retire mortgage note payableCash flows from (used for) financing activities181920Cash flows from (used for) investing activities2122 Cash balance, January 1, 20Y823 Cash balance, December 31, 20Y8$45,000.00600,000.000.00555,000.00110,000.00$465,000.00Shaded cells have feedback. X

Cash flow statements are one of the three fundamental financial statements along with income…

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20Y7 2 Assets 3 Cash $95,000.00 $110,000.00 4 Accounts receivable (net) 260,000.00 280,000.00 5 Inventories 520,000.00 450,000.00 6 Prepaid expenses 15,000.00 5,000.00 7 Equipment 1,130,000.00 800,000.00 8 Accumulated depreciation-equipment (235,000.00) (190,000.00) 9 Total assets $1,785,000.00 $1,455,000.00 10 Liabilities and Stockholders’ Equity 11 Accounts payable (merchandise creditors) $100,000.00 $75,000.00 12 Mortgage note payable 0.00 500,000.00 13 Common stock, $10 par 500,000.00 200,000.00 14 Paid-in capital in excess of par—common stock 400,000.00 100,000.00 15 Retained earnings 785,000.00 580,000.00 16 Total liabilities and stockholders’ equity $1,785,000.00 $1,455,000.00 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, $250,000. b. Depreciation reported on the income statement, $135,000. c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 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. 30,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $45,000. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. 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

Section: Chapter Questions

Problem 1Q

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Question

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

1		Dec. 31, 20Y8	Dec. 31, 20Y7
2	Assets
3	Cash	$95,000.00	$110,000.00
4	Accounts receivable (net)	260,000.00	280,000.00
5	Inventories	520,000.00	450,000.00
6	Prepaid expenses	15,000.00	5,000.00
7	Equipment	1,130,000.00	800,000.00
8	Accumulated depreciation-equipment	(235,000.00)	(190,000.00)
9	Total assets	$1,785,000.00	$1,455,000.00
10	Liabilities and Stockholders’ Equity
11	Accounts payable (merchandise creditors)	$100,000.00	$75,000.00
12	Mortgage note payable	0.00	500,000.00
13	Common stock, $10 par	500,000.00	200,000.00
14	Paid-in capital in excess of par—common stock	400,000.00	100,000.00
15	Retained earnings	785,000.00	580,000.00
16	Total liabilities and stockholders’ equity	$1,785,000.00	$1,455,000.00

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, $250,000.
	b. Depreciation reported on the income statement, $135,000.
	c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 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. 30,000 shares of common stock were issued at $20 for cash.
	f. Cash dividends declared and paid, $45,000.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Labels and Amount Descriptions
Cash paid for dividends
Cash paid for equipment
Cash paid for merchandise

Cash paid for purchase of land
Cash paid to retire mortgage note payable
Cash received from customers
Cash received from sale of common stock
December 31, 20Y8
Decrease in inventories
Decrease in accounts payable
Decrease in accounts receivable
Decrease in prepaid expenses
Depreciation
For the Year Ended December 31, 20Y8
Gain on disposal of equipment
Gain on sale of investments
Increase in accounts payable
Increase in accounts receivable
Increase in inventories
Increase in prepaid expenses
Loss on disposal of equipment
Loss on sale of investments
Net cash flow from financing activities
Net cash flow from investing activities
Net cash flow from operating activities
Net cash flow used for financing activities
Net cash flow used for investing activities
Net cash flow used for operating activities
Net decrease in cash
Net income
Net increase in cash
Net loss

Statement of Cash Flows
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of
the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative
adjustments.
1 Cash flows from (used for) operating activities:
Net income
Adjustments to reconcile net income to net cash flow from operating activities:
Depreciation
Changes in current operating assets and liabilities:
Loss on disposal of equipment
Decrease in inventories
2
3
4
5
6
Yellow Dog Enterprises Inc.
Statement of Cash Flows
(Label)
7
✓
$250,000.00
135,000.00
0.00
70,000.00
Shaded cells have feedback.
Score: 40/149

Statement of Cash Flows
9
10
11
12 Cash flows from (used for) investing activities:
13
14
15
16 Cash flows from (used for) financing activities:
17
Cash paid for dividends
Cash paid for purchase of common stock
Cash paid to retire mortgage note payable
Cash flows from (used for) financing activities
18
19
20
Cash flows from (used for) investing activities
21
22 Cash balance, January 1, 20Y8
23 Cash balance, December 31, 20Y8
$45,000.00
600,000.00
0.00
555,000.00
110,000.00
$465,000.00
Shaded cells have feedback. X

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