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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 $50,520 $61,710 Accounts receivable (net) 77,630 83,200 Inventories 110,890 103,130 Prepaid expenses 4.520 3,120 Equipment 225,000 184,750 Accumulated depreciation-equipment (58,730) (45,310) Total assets $410,730 $390,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) S86,250 S81,640 Mortgage note payable 117,180 Common stock, $1 par 13,000 9,000 Paid-in capital in excess of par-common stock 205,000 110,000 Retained earnings 106,400 73,790 Total llabilities and stockholders' equity $410,730 $390,600 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, $83,710. b. Depredation reported on the income statement, $28,750. C. Equipment was purchased at a cost of $56,460 and fully depreclated equipment costing $15,330 was discarded, with no salvage realized. d. The mortgage note payable was not due for slx years, but the terms permitted earlier payment without penalty. e. 5,000 shares of common stock were Issued at $20 for cash. f. Cash dividends declared and pald, $51,010. 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.

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 $50,520 $61,710 Accounts receivable (net) 77,630 83,200 Inventories 110,890 103,130 Prepaid expenses 4.520 3,120 Equipment 225,000 184,750 Accumulated depreciation-equipment (58,730) (45,310) Total assets $410,730 $390,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) S86,250 S81,640 Mortgage note payable 117,180 Common stock, $1 par 13,000 9,000 Paid-in capital in excess of par-common stock 205,000 110,000 Retained earnings 106,400 73,790 Total llabilities and stockholders' equity $410,730 $390,600 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, $83,710. b. Depredation reported on the income statement, $28,750. C. Equipment was purchased at a cost of $56,460 and fully depreclated equipment costing $15,330 was discarded, with no salvage realized. d. The mortgage note payable was not due for slx years, but the terms permitted earlier payment without penalty. e. 5,000 shares of common stock were Issued at $20 for cash. f. Cash dividends declared and pald, $51,010. 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.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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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 $50,520 $61,710 Accounts receivable (net) 77,630 83,200 Inventories 110,890 103,130 Prepaid expenses 4.520 3,120 Equipment 225,000 184,750 Accumulated depreciation-equipment (58,730) (45,310) Total assets $410,730 $390,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) S86,250 S81,640 Mortgage note payable 117,180 Common stock, $1 par 13,000 9,000 Paid-in capital in excess of par-common stock 205,000 110,000 Retained earnings 106,400 73,790 Total llabilities and stockholders' equity $410,730 $390,600 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, $83,710. b. Depredation reported on the income statement, $28,750. C. Equipment was purchased at a cost of $56,460 and fully depreclated equipment costing $15,330 was discarded, with no salvage realized. d. The mortgage note payable was not due for slx years, but the terms permitted earlier payment without penalty. e. 5,000 shares of common stock were Issued at $20 for cash. f. Cash dividends declared and pald, $51,010. 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.
Transcribed Image Text: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 $50,520 $61,710 Accounts receivable (net) 77,630 83,200 Inventories 110,890 103,130 Prepaid expenses 4.520 3,120 Equipment 225,000 184,750 Accumulated depreciation-equipment (58,730) (45,310) Total assets $410,730 $390,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) S86,250 S81,640 Mortgage note payable 117,180 Common stock, $1 par 13,000 9,000 Paid-in capital in excess of par-common stock 205,000 110,000 Retained earnings 106,400 73,790 Total llabilities and stockholders' equity $410,730 $390,600 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, $83,710. b. Depredation reported on the income statement, $28,750. C. Equipment was purchased at a cost of $56,460 and fully depreclated equipment costing $15,330 was discarded, with no salvage realized. d. The mortgage note payable was not due for slx years, but the terms permitted earlier payment without penalty. e. 5,000 shares of common stock were Issued at $20 for cash. f. Cash dividends declared and pald, $51,010. 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.
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