Talware Networx Inc s balance sheet and income statement are as

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?

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