The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2014
ID: 2462383 • Letter: T
Question
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 $314,350 $293,090 Accounts receivable (net) 113,880 105,270 Inventories 321,470 311,650 Investments 0 120,750 Land 164,880 0 Equipment 354,680 275,550 Accumulated depreciation-equipment (83,040) (74,300) Total $1,186,220 $1,032,010 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $214,710 $203,310 Accrued expenses payable (operating expenses) 21,350 26,830 Dividends payable 11,860 9,290 Common stock, $10 par 64,060 50,570 Paid-in capital in excess of par-common stock 240,800 140,350 Retained earnings 633,440 601,660 Total $1,186,220 $1,032,010 The following additional information was taken from the records: The investments were sold for $141,280 cash. Equipment and land were acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. There was a $80,280 credit to Retained Earnings for net income. There was a $48,500 debit to Retained Earnings for cash dividends declared. Required: Hide 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.
Explanation / Answer
Indirect Method Statement of Cash Flows Ndet Income 80280 Depreciation 8740 Less: Increase in Saccounts Receivable -8610 Increase in Accounts Payable 11400 Accrued Expenses Payable -5480 Cash Flow from Operating Activities 86330