Sangoma Technologies Inc. began operations on January 1, 2013. Its post-closing trial balance at

December 31, 2013 and 2014, is shown below along with some other information.

Other information regarding Sangoma and its activities during 2014:
1. Assume all accounts have normal balances.
2. Cash dividends were declared and paid during the year.
3. Plant assets were sold during the year.
4. Plant assets worth $99,200 were purchased during the year by paying cash of $32,000 and issuing a long-term note payable for the balance.

Required
Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2014.
Analysis Component:
a. The Cash account balance for Sangoma Technologies Inc. decreased during 2014. Is this necessarily an unfavorable situation? Explain why or why not.
b. Explain the causes of change in Sangoma’s cash situation during2014.

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Sangoma Technologles Inc. Post-Closing Trial Balance Sangoma Technologies Inc. Income Statement December 31 For Year Ended December 31, 2014 2014 2013 Revenues: S 62,400 S 76,800 30,400 41,600 Cash Sales. $627,200 Receivables Expenses and other: Merchandise inventory.. 27,200 35,200 Cost of goods sold.. Other expenses. Depreciation expense. Loss on sales of plant assets . Total expenses and other Net loss. .. $483,200 190,400 Property, plant and equipment. Accumulated depreciation. Accounts payable. Accrued liabilities 230,400 155,200 25,600 64,000 49,600 11,200 52,800 62,400 20,800 6,400 684,800 S 57,600 Long-term notes payable Common shares. Retained earnings. 97,600 40,000 8,000 49,600 89,600 163,200