Talware Networx Inc.’s balance sheet and income statement are as follows:
Additional information regarding Talware’s activities during 2014: a. Equipment is purchased for $16,800 cash. b. 11,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $51,800 of cash dividends during the year.
Required Prepare a statement of cash flows for 2014 that reports the cash inflows and outflows from operating activities according to the indirect method. Show your supporting calculations. Analysis Component: Assume that Talware had a net loss instead of a net income. Does a net loss mean that there will always be a cash outflow from operating activities on the statement of cashflows?