The comparative balance sheet of Mavenir Technologies Inc. for December 31,2010

ID: 2365449 • Letter: T

Question

The comparative balance sheet of Mavenir Technologies Inc. for December 31,2010 and 2009, is shown as follows: The following additional information was taken from the records: The investments were sold for $140,000 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 $75,520 credit to Retained Earnings for net income. There was a $48,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

Explanation / Answer

Net Income

Adjustments made

Depreciation

Gain On Sale of Investments

Increase in Inventory

Increase in Account receivable

Increase in Creditor

Decrease in Acured Expenses

Cash Flow From Operating Activity

75520

9200

(20000)

(12320)

(9440)

11760

(5200)

49520