List errors you find in the following statement of cash flow

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Reference no: EM131063354

Statement of cash flows-indirect  method

List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $240,000. All other amounts are correct, except the cash balance at the end of the year.

Shasta Inc.
Statement of Cash Flows

For the Year Ended December 31, 2016

Cash flows from operating activities:

Net income


Adjustments  to  reconcile  net  income  to net

cash  flow  from  operating activities:


Depreciation 100,800  

Gain on sale of investments


Changes in current operating assets and liabilities:

Increase in accounts receivable


Increase in inventories


Increase in accounts payable


Decrease in accrued expenses payable


Net cash flow from operating activities

$ 463,440

Cash flows from investing activities:

Cash received from sale of investments


Less: Cash paid for purchase of land


Cash paid for purchase of equipment



Net cash flow used for investing activities


Cash  flows  from  financing activities:

Cash received from sale of common stock


Cash paid for dividends


Net cash flow from financing


Increase in cash

$  47,760

Cash at the end of the year


Cash at the beginning of the year


Reference no: EM131063354

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