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:
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Dec. 31, 2013
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Dec. 31, 2012
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Assets
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Cash
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$241,560
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$227,290
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Accounts receivable (net)
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87,510
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81,630
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Inventories
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247,030
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241,700
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Investments
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0
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93,640
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Land
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126,700
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0
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Equipment
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272,550
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213,690
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Accumulated depreciation equipment
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(63,810)
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(57,620)
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Total
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$911,540
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$800,330
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Liabilities and Stockholders’Equity
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Accounts payable (merchandise creditors)
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$164,990
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$157,670
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Accrued expenses payable (operating expenses)
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16,410
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20,810
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Dividends payable
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9,120
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7,200
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Common stock, $10 par
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49,220
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39,220
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Paid in capital in excess of par common stock
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185,040
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108,840
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Retained earnings
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486,760
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466,590
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Total
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$911,540
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$800,330
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The following additional information was taken from the records:
a. The investments were sold for $109,560 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 $57,790 credit to Retained Earnings for net income.
f. There was a $37,620 debit to Retained Earnings for cash dividends declared.
Instructions:
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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.
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Mavenir Technologies Inc.
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For the Year Ended December 31, 2013
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Cash flows from operating activities:
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- Cash paid for land
- Cash received from sale of investments
- Cash received from sale of common stock
- Net income
Correct 5
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Adjustments to reconcile net income to net cash flow from operating activities:
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- Cash paid for land
- Cash paid for dividends
- Cash received from sale of common stock
- Depreciation
Correct 8
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- Cash paid for dividends
- Cash received from net income
- Gain on sale of investments
- Loss on sale of investments
Correct 10
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Changes in current operating assets and liabilities:
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- Decrease in accounts receivable
- Decrease in inventories
- Depreciation
- Increase in accounts receivable
Correct 13
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- Decrease in accounts payable
- Decrease in accounts receivable
- Decrease in inventories
- Increase in inventories
Correct 15
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- Decrease in accounts payable
- Decrease in inventories
- Increase in accounts payable
- Increase in accrued expenses
Correct 17
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- Decrease in accounts payable
- Decrease in accrued expenses payable
- Depreciation
- Increase in accrued expenses payable
Correct 19
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Net cash flow from operating activities
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Cash flows from investing activities:
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- Cash received from sale of common stock
- Cash received from sale of investments
- Cash received from net income
- Cash received from gain on sale of investments
Correct 24
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- Less cash paid for depreciation
- Less cash paid for dividends
- Less cash paid for purchase of land
- Less cash paid for accounts payable
Correct 26
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- Less cash paid for accumulated depreciation
- Less cash paid for accounts receivable
- Less cash paid for inventories
- Less cash paid for purchase of equipment
Correct 28
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Net cash flow used for investing activities
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Cash flows from financing activities:
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- Cash received from sale of common stock
- Cash received from net income
- Cash received from sale of investments
- Cash received from retained earnings
Correct 34
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- Cash paid for inventories
- Cash paid for purchase of land
- Cash paid for purchase of equipment
- Less cash paid for dividends
Correct 36
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Net cash flow provided by financing activities
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- Decrease in cash
- Increase in cash
Correct 40
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Cash at beginning of the year
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