Drive a statement of cash flows using the indirect method

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Reference no: EM131983384

Problem

Statement of Cash Flows-Indirect Method

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	$311,160	$291,450
Accounts receivable (net)	112,720	104,680
Inventories	318,200	309,920
Investments	0	120,070
Land	163,210	0
Equipment	351,080	274,000
Accumulated depreciation-equipment	(82,190)	(73,890)
Total	$1,174,180	$1,026,230
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$212,530	$202,170
Accrued expenses payable (operating expenses)	21,140	26,680
Dividends payable	11,740	9,240
Common stock, $10 par	63,410	50,290
Paid-in capital in excess of par-common stock	238,360	139,570
Retained earnings	627,000	598,280
Total	$1,174,180	$1,026,230

The following additional information was taken from the records:

The investments were sold for $140,480 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 $76,950 credit to Retained Earnings for net income.
There was a $48,230 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: EM131983384

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