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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

$360,000

Adjustments  to  reconcile  net  income  to net

cash  flow  from  operating activities:

 
Depreciation 100,800  

Gain on sale of investments

17,280

Changes in current operating assets and liabilities:

Increase in accounts receivable

27,360

Increase in inventories

(36,000)

Increase in accounts payable

(3,600)

Decrease in accrued expenses payable

(2,400)

Net cash flow from operating activities

$ 463,440

Cash flows from investing activities:


Cash received from sale of investments

$240,000

Less: Cash paid for purchase of land

$259,200

Cash paid for purchase of equipment

432,000

691,200

Net cash flow used for investing activities

(415,200)

Cash  flows  from  financing activities:


Cash received from sale of common stock

$312,000

Cash paid for dividends

132,000

Net cash flow from financing

180,000

Increase in cash

$  47,760

Cash at the end of the year

192,240

Cash at the beginning of the year

$240,000

Reference no: EM131063354

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