Acc113 Managerial Accounting: P16-1A The comparative balance sheet of Mavenir Technologies

Acc113 Managerial Accounting

P16-1A
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 - 120,000
Land 164,000 -
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 12,120 9,600
Common stock, $10 par 64,000 48,000
Paid-in capital in excess of par - common stock 240,000 14,000
Retained earnings 629,680 602,160
$1,181,160 $902,560

The following additional information was taken from the records:
a) The investments were sold for $140,000.
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 the 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.
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