Reference no: EM131815970

Problem - Statement of cash flows-indirect method

The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2010 and 2009, is shown as follows:

		Dec. 31, 2010	Dec. 31, 2009
Assets
Cash		$250,350	$232,620
Accounts receivable (net)		90,690	83,550
Inventories		256,030	247,360
Investments		0	95,830
Land		131,320	0
Equipment		282,470	218,690
Accumulated depreciation-equipment		(66,130)	(58,970)
	Total	$944,730	$819,080
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$171,000	$161,360
Accrued expenses payable (operating expenses)		17,010	21,300
Dividends payable		9,450	7,370
Common stock, $10 par		51,020	40,130
Paid-in capital in excess of par-common stock		191,780	111,390
Retained earnings		504,470	477,530
	Total	$944,730	$819,080

The following additional information was taken from the records:

a. The investments were sold for $112,120 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 $65,440 credit to Retained Earnings for net income.

f. There was a $38,500 debit to Retained Earnings for cash dividends declared.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use a minus sign to indicate cash outflows.