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.