Jennifer's Wedding Shops earned net income of $27,000, which included depreciation of $16,000. Jennifer's acquired a $119,000 building by borrowing $119,000 on a long-term note payable.
Requirements
1. How much did Jennifer's cash balance increase or decrease during the year?
2. Were there any non-cash transactions for the company? If so, show how they would be reported in the statement of cash flows.