Sangoma Technologies Inc began operations on January 1 2013 Its

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.

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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