The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2014
ID: 2463007 • 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 Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment $232,570 84,250 237,840 0 121,990 262,410 (61,430) $877,630 $216,350 77,700 230,050 89,130 0 203,400 (54,850) $761,780 Total Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital in excess of par-common stock Retained earnings $158,850 15,800 8,780 47,390 178,160 468,650 $877,630 150,070 19,810 6,860 7,330 103,600 444,110 $761,780 Total The following additional information was taken from the records: a. The investments were sold for $104,280 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $60,340 credit to Retained Earnings for net income. f. There was a $35,800 debit to Retained Earnings for cash dividends declared.Explanation / Answer
Mavenir Technologies Inc. Cash flow Statement for the period ending Dec31.2014 Indirect Method Details Amt $ Cash Flow From Operating Activities Net Income 60,340 Add Depreciation 6,580 Less : Capital Gain Less Investment Income (15,150) Increased Accounts Receivable (6,550) Increased Inventory (7,790) Increased Accounts Payable 8,780 Decreased Accrued Expenses (4,010) Income Tax Payable Total Cash Flow From Operating Activities 42,200 Cash Flow From Investing Activities Cash Inflow from sales of assets - Cash outflow from purchase of assets (181,000) Cash Inflow from sales of investments 104,280 Total Cash Flow From Investing Activities (76,720) Cash Flow From Financing Activities Cash received from issue of Common stock 10,060 Cash Received from Loan 74,560 Cash Paid for Dividend Payment (33,880) TotalCash Flow From Financing Activities 50,740 Total Cash Flow from Operating. Investing and Financing Activities 16,220 Intial Cash Balance 216,350 Net Effect of Cash Flow during the period 16,220 Closing Cash Balance 232,570