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Statement of Cash Flows—Indirect Method  The comparative balance sheet of Yellow Dog Enterprises Inc

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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, 20Y8 Dec. 31, 20Y7 Assets Cash $48,260 $59,200 Accounts receivable (net) 74,160 79,810 Merchandise inventory 105,930 98,930 Prepaid expenses 4,320 3,000 Equipment 215,800 177,230 Accumulated depreciation-equipment (56,110) (43,470) Total assets $392,360 $374,700 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $82,400 $78,310 Mortgage note payable 0 112,410 Common stock, $1 par 13,000 8,000 Paid-in capital: Excess of issue price over par-common stock 201,000 106,000 Retained earnings 95,960 69,980 Total liabilities and stockholders' equity $392,360 $374,700 
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, $66,510. b. Depreciation reported on the income statement, $27,350. c. Equipment was purchased at a cost of $53,280, and fully depreciated equipment costing $14,710 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 $20 for cash. f. Cash dividends declared and paid, $40,530.