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The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, Dec. 31, 20Υ8 20Y7 Assets Cash $8,860 $109,240 Accounts receivable (net) 136,550 147,270 Merchandise inventory 195,060 182,530 Prepaid expenses 7,950 5,530 Equipment 397,360 327,030 Accumulated depreciation-equipment (103,310) (80,200) Total assets $722,470 $691,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $151,720 $144,500 Mortgage note payable 207,420 Common stock, $1 par 24,000 15,000 Paid-in capital: Excess of issue price over par-common stock 330,000 195,000 Retained earnings 216,750 129,480 Total liabilities and stockholders' equity $722,470 $691,400 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, $223,410. b. Depreciation reported on the income statement, $50,250. c. Equipment was purchased at a cost of $97,470, and fully depreciated equipment costing $27,140 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. 9,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $136,14o. 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 adiustmer

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Dec. 31, Dec. 31, 20Υ8 20Y7 Assets Cash $8,860 $109,240 Accounts receivable (net) 136,550 147,270 Merchandise inventory 195,060 182,530 Prepaid expenses 7,950 5,530 Equipment 397,360 327,030 Accumulated depreciation-equipment (103,310) (80,200) Total assets $722,470 $691,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $151,720 $144,500 Mortgage note payable 207,420 Common stock, $1 par 24,000 15,000 Paid-in capital: Excess of issue price over par-common stock 330,000 195,000 Retained earnings 216,750 129,480 Total liabilities and stockholders' equity $722,470 $691,400 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, $223,410. b. Depreciation reported on the income statement, $50,250. c. Equipment was purchased at a cost of $97,470, and fully depreciated equipment costing $27,140 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. 9,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $136,14o. 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 adiustmer

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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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 20Υ7 Assets Cash $88,860 $109,240 Accounts receivable (net) 136,550 147,270 Merchandise inventory 195,060 182,530 Prepaid expenses 7,950 5,530 Equipment 397,360 327,030 Accumulated depreciation-equipment (103,310) (80,200) Total assets $722,470 $691,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $151,720 $144,500 Mortgage note payable 207,420 Common stock, $1 par 24,000 15,000 Paid-in capital: Excess of issue price over par-common stock 330,000 195,000 Retained earnings 216,750 129,480 Total liabilities and stockholders' equity $722,470 $691,400 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2OY8 are as follows: a. Net income, $223,410. b. Depreciation reported on the income statement, $50,250. c. Equipment was purchased at a cost of $97,470, and fully depreciated equipment costing $27,140 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. 9,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $136,140. 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.
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 20Υ7 Assets Cash $88,860 $109,240 Accounts receivable (net) 136,550 147,270 Merchandise inventory 195,060 182,530 Prepaid expenses 7,950 5,530 Equipment 397,360 327,030 Accumulated depreciation-equipment (103,310) (80,200) Total assets $722,470 $691,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $151,720 $144,500 Mortgage note payable 207,420 Common stock, $1 par 24,000 15,000 Paid-in capital: Excess of issue price over par-common stock 330,000 195,000 Retained earnings 216,750 129,480 Total liabilities and stockholders' equity $722,470 $691,400 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2OY8 are as follows: a. Net income, $223,410. b. Depreciation reported on the income statement, $50,250. c. Equipment was purchased at a cost of $97,470, and fully depreciated equipment costing $27,140 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. 9,000 shares of common stock were issued at $16 for cash. f. Cash dividends declared and paid, $136,140. 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.
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: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year
Transcribed Image Text: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: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year
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