Questions:
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 . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . $ 312,880 $ 292,960
Accounts receivable (net) . . . . . . . . . . . . . . . 113,920 104,480
Inventories . . . . . . . . . . . . . . . . . . . .. . . . . . . 320,880 308,560
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . 0 120,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164,000 0
Equipment . . . . . . . . . . . . . . . . . . . . . . .. . . . . 352,560 276,560
Accumulated depreciation equipment . . .. __(83,200) __(74,000)
$1,181,040 $1,028,560
Liabilities and Stockholders Equity
Accounts payable (merchandise creditors) .. $ 214,240 $ 202,480
Accrued expenses payable (operating expenses) . . . 21,120 26,320
Dividends payable . . . . . . . . . . . . . . . . . . . . . . . 12,000 9,600
Common stock, $10 par. . . . . . . . . . . . . . . . . . . 64,000 48,000
Paid-in capital in excess of par common stock . .240,000 140,000
Retained earnings . . . . . . . . . . . . . . . . . . . . ___629,680 602,160
$1,181,040 $1,028,560
The following additional information was taken from the records:
a. The investments were sold for $140,000 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 $75,520 credit to Retained Earnings for net income.
f. 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.