16 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, 20Y8 Dec. 31, 20Y7AssetsCash$56,820$69,340Accounts receivable (net)87,30093,470Inventories124,730115,840Prepaid expenses5,0803,510Equipment254,060207,570Accumulated depreciation-equipment(66,060)(50,900)Total assets$461,930$438,830Liabilities and Stockholders' EquityAccounts payable (merchandise creditors)$97,010$91,720Mortgage note payable131,650Common stock, $1 par14,0009,000Paid-in capital in excess of par-common stock199,000124,000Retained earnings151,92082,460Total liabilities and stockholders' equity$461,930$438,830 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, $177,820.b. Depreciation reported on the income statement, $32,390.c. Equipment was purchased at a cost of $63,720 and fully depreciated equipment costing $17,230 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, $108,360.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:Adjustments to reconcile net income to net cash flow from operating activities:Changes in current operating assets and liabilities:Net cash flow from operating activitiesCash flows from (used for) invectina activities:

Cash flows from operating activities: It is a section of the Statement of cash flow that explains…

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 $56,820 $69,340 Accounts receivable (net) 87,300 93,470 Inventories 124,730 115,840 Prepaid expenses 5,080 3,510 Equipment 254,060 207,570 Accumulated depreciation-equipment (66,060) (50,900) Total assets $461,930 $438,830 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $97,010 $91,720 Mortgage note payable 131,650 Common stock, $1 par 14,000 9,000 Paid-in capital in excess of par-common stock 199,000 124,000 Retained earnings 151,920 82,460 Total liabilities and stockholders' equity $461,930 $438,830

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 $56,820 $69,340 Accounts receivable (net) 87,300 93,470 Inventories 124,730 115,840 Prepaid expenses 5,080 3,510 Equipment 254,060 207,570 Accumulated depreciation-equipment (66,060) (50,900) Total assets $461,930 $438,830 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $97,010 $91,720 Mortgage note payable 131,650 Common stock, $1 par 14,000 9,000 Paid-in capital in excess of par-common stock 199,000 124,000 Retained earnings 151,920 82,460 Total liabilities and stockholders' equity $461,930 $438,830

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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