I need help finishing this problem, I\'m really struggling on the cash flow from

Question

I need help finishing this problem, I'm really struggling on the cash flow from financing activities and that is all I need to finish this problem, can someone please help and show me how you got the numbers?!?!

Statement of Cash Flows%u2014Indirect Method

The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2013 and 2012, is shown as follows:

The following additional information was taken from the records:

Instructions:

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, negative amounts or a decrease in cash.

Dec. 31, 2013 Dec. 31, 2012 Assets Cash $241,560 $227,290 Accounts receivable (net) 87,510 81,630 Inventories 247,030 241,700 Investments 0 93,640 Land 126,700 0 Equipment 272,550 213,690 Accumulated depreciation-equipment (63,810) (57,620) Total $911,540 $800,330 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $164,990 $157,670 Accrued expenses payable (operating expenses) 16,410 20,810 Dividends payable 9,120 7,200 Common stock, $10 par 49,220 39,220 Paid-in capital in excess of par-common stock 185,040 108,840 Retained earnings 486,760 466,590 Total $911,540 $800,330

Explanation / Answer

I have answered in the boxes. Cash from shares sold = (49220-39220)+(185,040-108,840) = 86,200. Now cash dividends to the extent of 37,620 were declared, however dividends payable increased by (9120-7200)=1,920. So Actual dividends paid in cash=37,620-1,920=35,700. So net cash from financing=86,200-35,700=50,500. Hope that helped. Please let me know in case of any queries.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.