Design Layout References Mailings Review View Help Table Design Layout 11 A A O Aav AaBbCcDo AaBbCcDd AaBbCcD( Editing Dictate x 2 1 Normal U v ab X, A v Body Text 1 List Para. A v Al Font Paragraph Styles y Voice 1 . 5 . 1 . 4 . 1 . . 1 . 2 . 1 . 1 . 1 . ] . 1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 . 1 . 6 . 1 . 7 . 1 . 8 . 19 . 1 .10 1 .11 1 15 Capital Hotels and Restaurants Incorporated recently hired a new accounting clerk. She has compiled the following information to prepare the statement of cash flows for the year ended December 31, 2020. required Net income for the year was $114,140. Depreciation expense was $15,300. a) Identify the problems with the statement of cash flows that the accounting clerk prepared Equipment was sold for a gain of $16,000. Cash proceeds from the sale were $36,000. b, Prepare a corrected statement of cash flows. Equipment was purchased for $250,000. Dividends of $50,000 were paid. Accounts receivable increased by $31,400. Capital hotels and restaurants incorporated Inventory decreased by $38,700. statement of Cash Flows Accounts payable increased by $41, 100. For the Year ended December 31, 2020 Notes payable increased by $55,000. Shares were sold for $50,000. Cash Flow from operating activities Cash balance on January 1, 2020, was $114,800. Cash balance on December 31, 2020, was $117,640. The statement of cash flows the accounting clerk prepared is shown below. Capital hotels and restaurants incorporated statement of Cash Flows For the Year ended december 31, 2020 Cash Flow from operating activities Net Income $114, 140 net Cash Provided (Used) by operating activities: Adjustments for Non-Cash Items Depreciation Expense 15,300 Cash Flow from investing activities Changes in Current Assets and Current Liabilities Increase in Accounts Receivable 31,40 Decrease in Inventory (38,700) Increase in Accounts Payable 41, 100 net Cash Provided (Used) by investing activities: ale of Equipment 36,000 Purchase of Equipment (250,000) Cash Flow from Financing activities net Cash Provided (Used) byoperating activities ($50,760) Cash Flow from investing activities Proceeds from Notes Payable 55,000 net Cash Provided (Used) by Financing activities: net Cash Provided (Used) by investing activities 55,000 net increase (decrease) in Cash: Cash Flow from Financing activities Cash at the Beginning of the Year: Proceeds from Issue of Common Shares 50,000 Cash at the end of the Year: Payment of Cash Dividend 50,000) net Cash Provided (Used) by Financing activities net increase (decrease) in Cash 4,240 Cash at the Beginning of the Year 114,800 Cash at the end of the Year $119,040 English (United States) UX Accessibility: Investigate Focus 6'C Clear