Case Study aking granite countertops. A new accounting clerk has compiled the following h flows for the year ended December 31, 2018 CS-1 LO 2 Granite Surfaces specializes in making granite counter ormation to prepare the statement of cash flows for the year ended Decem Net income for the year was $114,140. Depreciation expense was $15,300. opment was sold for a gain of $16.000. Cash proceeds from the sale were $30,000 Equipment was purchased for $250,000 Dividends of $50,000 were paid. Accounts receivable increased by $31,400. Merchandise inventory decreased by $38,700. Accounts payable increased by $41,100. Notes payable increased by $55,000 Stock was sold for $50.000 (also its book value). Cash balance on January 1, 2018 was 5114,800. Cash balance on December 31, 2018 was $117,640. The statement of cash flows the accounting clerk prepared is shown below. Granite Surfaces Statement of Cash Flows For the Year Ended December 31, 2018 Cash Flow from Operating Activities Net Income $114,140 Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities Depreciation Expense 15,300 Changes in Operating Assets and Liabilities Increase in Accounts Receivable 31,400 Decrease in Merchandise Inventory (38,700) Increase in Accounts Payable 41,100 Sale of Equipment 36,000 Purchase of Equipment 1250,000) Net Cash Provided (Used) by Operating Activities ($50,760) Cash Flow from Investing Activities Proceeds from Notes Payable Net Cash Provided (Used) by Investing Activities 55.000 55,000 Cash Flow from Financing Activities Payment of Cash Dividend Proceeds from Issuance of Common Stock Net Cash Provided (Used) by Financing Activities (50,000) 50,000 Net Increase (Decrease) in Cash Cash at the Beginning of the Year Cash at the End of the Year 4,240 114,800 $119.040 Required oblems with the statement of cash flows that the accounting cek prepared Identify the proble SOS Prepare a corrected statement of cash flows