Prepare a statement of cash flows using the indirect method

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Reference no: EM131801529

Assignment

The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2014 and 2013, is shown as follows:

 

Dec. 31, 2014

Dec. 31, 2013

Assets



Cash

$245,960

$227,750

Accounts receivable (net)

89,100

81,800

Inventories

251,540

242,170

Investments

0

93,830

Land

129,010

0

Equipment

277,520

214,120

Accumulated depreciation-equipment

(64,970)

(57,740)

 Total

$928,160

$801,930

Liabilities and Stockholders' Equity



Accounts payable (merchandise creditors)

$168,000

$157,980

Accrued expenses payable (operating expenses)

16,710

20,850

Dividends payable

9,280

7,220

Common stock, $10 par

50,120

39,290

Paid-in capital in excess of par-common stock

188,420

109,060

Retained earnings

495,630

467,530

Total

$928,160

$801,930

The following additional information was taken from the records:

1. The investments were sold for $109,780 cash.
2. Equipment and land were acquired for cash.
3. There were no disposals of equipment during the year.
4. The common stock was issued for cash.
5. There was a $65,790 credit to Retained Earnings for net income.
6. There was a $37,690 debit to Retained Earnings for cash dividends declared.

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 out flows, cash payments, decreases in cash and for any adjustments, if required.

Reference no: EM131801529

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