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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Talware Networx Inc. Comparative Balance Sheet Information Talware Networx Inc Income Statement For Year Ended December 31, 2014 December 31 Assets 2014 2013 Sales Cost of goods sold... $929,600 557,200 372,400 37,800 Merchandise inventory284,200 249,200 Equipment...155,400 138,600 43,400 Operating expenses Depreciation expense $ 25,200 Total operating expenses.... 259,000 $113,400 19,600 S 93,800 Liabilities and Equity Income from operations.. Accounts payable...$ 32,200 44,800 11,200 12,600 40,600