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. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.
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 $75,170 $92,110
4 Accounts Receivable (net) 115,500 124,180
5 Merchandise Inventory 165,000 153,920
6 Prepaid Expenses 6,720 4,660
7 Equipment 336,110 275,760
8 Accumulated depreciation-equipment (87,390) (67,630)
9 Total Assets $611,110 $583,000
10 Liabilities and Stockholder's Equity
11 Accounts Payable (merchandise creditors) $128,330 $121,850
12 Mortgage note payable 0 174,900
13 Common stock, $1 par 19,000 12,000
14 Paid-in capital: Excess of issue price over par-common stock 297,000 164,000
15 Retained Earnings 166,780 110,250
16 Total Liabilities and Stockholders' Equity $611,110 $583,000
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, $144,720
B Depreciation reported on the income statement, $42,650
C Equipment was purchased at a cost of $83,240, and fully depreciated equipment costing $22,890 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 7,000 shares of common stock were issued at $20 for cash
F Cash dividends declared and paid, $88,190
Yellow Dog Enterprises Inc
Statement of Cash Flows
For the year ended December 31, 20Y8
1 Cash flows from operating activities
2
3 Adjustments to reconcile net income to net cash flow from operating activities
4
5 Changes in current operating assets and liabilities
6
7
8
9
10 Net cash flow from operating activities
11
12 Cash flows from (used for) investing activities
13
14 Net cash flow used for investing activities
15
16 Cash flows from (used for) financing activities
17
18
19
20 Net cash flow used for financing activities
21
22 Cash at the beginning of the year
23
24 Cash at the end of the year
25


Sagot :

Answer:

Yellow Dog Enterprises Inc.

Yellow Dog Enterprises Inc

Statement of Cash Flows

For the year ended December 31, 20Y8

1 Cash flows from operating activities  

2 Net income                                                            $144,720

3 Adjustments to reconcile net income to net

cash flow from operating activities

4 Depreciation expense                                             42,650

5 Changes in current operating assets and liabilities

6 Accounts Receivable (net)                                        8,680

7 Merchandise Inventory                                           -11,080

8 Prepaid Expenses                                                   -2,060  

9 Accounts payable                                                    6,480

10 Net cash flow from operating activities          $189,390

11

12 Cash flows from (used for) investing activities

13 Purchase of equipment                                     -83,240

14 Net cash flow used for investing activities      (83,240)

15

16 Cash flows from (used for) financing activities

17 Common stock issued                                     140,000

18 Cash Dividends paid                                         -88,190

19 Mortgage note payable                                  -174,900

20 Net cash flow used for financing activities  (123,090)

21  Net Cash Flows                                             ($16,940)

22 Cash at the beginning of the year                 $92,110

23

24 Cash at the end of the year                           $75,170

25

Explanation:

a) Data and Calculations:

Comparative balance sheet of

Yellow Dog Enterprises Inc.

At December 31, 20Y8 and 20Y7

1                                                            Dec 31, 20Y8 Dec 31, 20Y7

2 Assets                                                                                           Changes

3 Cash                                                            $75,170      $92,110    -$16,940

4 Accounts Receivable (net)                         115,500       124,180       -8,680

5 Merchandise Inventory                             165,000     153,920        11,080

6 Prepaid Expenses                                         6,720         4,660        2,060

7 Equipment                                                   336,110    275,760      60,350

8 Accumulated depreciation                        (87,390)    (67,630)      (19,760)

9 Total Assets                                               $611,110 $583,000      

10 Liabilities and Stockholders Equity

11 Accounts Payable                                   $128,330   $121,850      $6,480

12 Mortgage note payable                              0            174,900    -174,900

13 Common stock, $1 par                              19,000      12,000         7,000

14 Paid-in capital-common stock               297,000    164,000     133,000

15 Retained Earnings                                  166,780     110,250      

16 Total Liabilities & Stockholders' Equity $611,110 $583,000

Analysis of additional information:

A Net income  $144,720

B Depreciation expense = $42,650

C Equipment purchase $83,240 Cash $83,240

   Discarded Equipment = $22,890

E Cash $140,000 Common stock issued $7,000 Paid-in Capital $133,000

F Cash Dividends $88,190 Cash $88,190

Equipment Account

Account Titles          Debit      Credit

Beginning balance  275,760

Cash                          83,240

Discarded equipment           22,890

Ending balance                      336,110