Statement of Cash FlowsâIndirect 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 $246,880 $232,300 Accounts receivable (net) 89,440 83,430 Inventories 252,460 247,030 Investments 0 95,700 Land 129,500 0 Equipment 278,560 218,400 Accumulated depreciation-equipment (65,210) (58,890) Total $931,630 $817,970 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $168,630 $161,140 Accrued expenses payable (operating expenses) 16,770 21,270 Dividends payable 9,320 7,360 Common stock, $10 par 50,310 40,080 Paid-in capital in excess of par-common stock 189,120 111,240 Retained earnings 497,480 476,880 Total $931,630 $817,970
The following additional information was taken from the records:
The investments were sold for $111,970 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 $59,040 credit to Retained Earnings for net income.
There was a $38,440 debit to Retained Earnings for cash dividends declared.
Required:
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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.
Mavenir Technologies Inc.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities:
$
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities
$
Cash flows from investing activities:
$
$
Net cash flow used for investing activities
Cash flows from financing activities:
$
Net cash flow provided by financing activities
$
Cash at beginning of the year
Cash at end of the year
$
Statement of Cash FlowsâIndirect 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 | $246,880 | $232,300 | |||
| Accounts receivable (net) | 89,440 | 83,430 | |||
| Inventories | 252,460 | 247,030 | |||
| Investments | 0 | 95,700 | |||
| Land | 129,500 | 0 | |||
| Equipment | 278,560 | 218,400 | |||
| Accumulated depreciation-equipment | (65,210) | (58,890) | |||
| Total | $931,630 | $817,970 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable (merchandise creditors) | $168,630 | $161,140 | |||
| Accrued expenses payable (operating expenses) | 16,770 | 21,270 | |||
| Dividends payable | 9,320 | 7,360 | |||
| Common stock, $10 par | 50,310 | 40,080 | |||
| Paid-in capital in excess of par-common stock | 189,120 | 111,240 | |||
| Retained earnings | 497,480 | 476,880 | |||
| Total | $931,630 | $817,970 | |||
The following additional information was taken from the records:
The investments were sold for $111,970 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 $59,040 credit to Retained Earnings for net income.
There was a $38,440 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.
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Related questions
Statement of Cash FlowsâIndirect Method
The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2014 and 2013, is as follows:
| Dec. 31, 2014 | Dec. 31, 2013 | ||||
| Assets | |||||
| Cash | $81,420 | $100,190 | |||
| Accounts receivable (net) | 125,110 | 135,070 | |||
| Merchandise inventory | 178,720 | 167,420 | |||
| Prepaid expenses | 7,280 | 5,070 | |||
| Equipment | 364,070 | 299,950 | |||
| Accumulated depreciation-equipment | (94,660) | (73,560) | |||
| Total | $661,940 | $634,140 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable (merchandise creditors) | $139,010 | $132,540 | |||
| Mortgage note payable | 0 | 190,240 | |||
| Common stock, $1 par | 21,000 | 13,000 | |||
| Paid-in capital in excess of par-common stock | 315,000 | 179,000 | |||
| Retained earnings | 186,930 | 119,360 | |||
| Total | $661,940 | $634,140 | |||
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows:
Net income, $172,980.
Depreciation reported on the income statement, $46,000.
Equipment was purchased at a cost of $89,020, and fully depreciated equipment costing $24,900 was discarded, with no salvage realized.
The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty.
8,000 shares of common stock were issued at $18 for cash.
Cash dividends declared and paid, $105,410.
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.
Statement of Cash FlowsâIndirect Method
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:
| Dec. 31, 20Y9 | Dec. 31, 20Y8 | ||||
| Assets | |||||
| Cash | $245,600 | $227,150 | |||
| Accounts receivable (net) | 88,970 | 81,580 | |||
| Inventories | 251,170 | 241,550 | |||
| Investments | 0 | 93,580 | |||
| Land | 128,820 | 0 | |||
| Equipment | 277,110 | 213,550 | |||
| Accumulated depreciationâequipment | (64,880) | (57,590) | |||
| Total assets | $926,790 | $799,820 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable | $167,750 | $157,560 | |||
| Accrued expenses payable | 16,680 | 20,800 | |||
| Dividends payable | 9,270 | 7,200 | |||
| Common stock, $10 par | 50,050 | 39,190 | |||
| Paid-in capital: Excess of issue price over par-common stock | 188,140 | 108,780 | |||
| Retained earnings | 494,900 | 466,290 | |||
| Total liabilities and stockholdersâ equity | $926,790 | $799,820 | |||
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The investments were sold for $84,220 cash.
The common stock was issued for cash.
There was a $66,200 credit to Retained Earnings for net income.
There was a $37,590 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, or any negative adjustments.
| Merrick Equipment Co. | ||
| Statement of Cash Flows | ||
| For the Year Ended December 31, 20Y9 | ||
| Cash flows from operating activities: | ||
| Net income | $ | |
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| Depreciation | ||
| Loss on sale of investments | ||
| Changes in current operating assets and liabilities: | ||
| Increase in accounts receivable | ||
| Increase in inventories | ||
| Increase in accounts payable | ||
| Decrease in accrued expenses payable | ||
| Net cash flow from operating activities | $ | |
| Cash flows from (used for) investing activities: | ||
| Cash from sale of investments | $ | |
| Cash used for purchase of land | ||
| Cash used for purchase of equipment | ||
| Net cash flow used for investing activities | ||
| Cash flows from (used for) financing activities: | ||
| Cash from sale of common stock | ||
| Cash used for dividends | ||
| Net cash flow from financing activities | ||
| Increase in cash | $ | |
| Cash at the beginning of the year | ||
| Cash at the end of the year | $ | |
