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 $89,460   $110,210   Accounts receivable (net) 137,470   148,570   Merchandise inventory 196,380   184,140   Prepaid expenses 8,000   5,580   Equipment 400,030   329,920   Accumulated depreciation-equipment (104,010)   (80,910)     Total assets $727,330   $697,510         Liabilities and Stockholders' Equity     Accounts payable (merchandise creditors) $152,740   $145,780   Mortgage note payable 0   209,250   Common stock, $1 par 24,000   15,000   Paid-in capital: Excess of issue price over par-common stock 350,000   197,000   Retained earnings 200,590   130,480     Total liabilities and stockholders’ equity $727,330   $697,510   Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net income, $179,480. Depreciation reported on the income statement, $50,480. Equipment was purchased at a cost of $97,490, and fully depreciated equipment costing $27,380 was discarded, with no salvage realized. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. 9,000 shares of common stock were issued at $18 for cash. Cash dividends declared and paid, $109,370. 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 FlowsFor the Year Ended December 31, 20Y8

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $89,460   $110,210  
Accounts receivable (net) 137,470   148,570  
Merchandise inventory 196,380   184,140  
Prepaid expenses 8,000   5,580  
Equipment 400,030   329,920  
Accumulated depreciation-equipment (104,010)   (80,910)  
  Total assets $727,330   $697,510  
     
Liabilities and Stockholders' Equity    
Accounts payable (merchandise creditors) $152,740   $145,780  
Mortgage note payable 0   209,250  
Common stock, $1 par 24,000   15,000  
Paid-in capital: Excess of issue price over par-common stock 350,000   197,000  
Retained earnings 200,590   130,480  
  Total liabilities and stockholders’ equity $727,330   $697,510  

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

  1. Net income, $179,480.
  2. Depreciation reported on the income statement, $50,480.
  3. Equipment was purchased at a cost of $97,490, and fully depreciated equipment costing $27,380 was discarded, with no salvage realized.
  4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
  5. 9,000 shares of common stock were issued at $18 for cash.
  6. Cash dividends declared and paid, $109,370.

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 FlowsFor the Year Ended December 31, 20Y8

 

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