eBook Show Me How Statement of Cash Flows"Indirect Method The following statement of cash flows for Shasta Inc was not correctly prepared. The cash balarice 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, 20yg Cash flows from operating activities: Net income $360,000 Adjustments to reconcile net income to net cash flow from operating activities 100,800 Gain on sale of investments 17,280 crert cere Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable 27,360 (36,000) (3,600) $463,440 Net cash flow from operating activities Cash flows from tused for) investing activities: $240,000 s(259,200) (432,000) Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment (415,200) Net cash flow used for investing activities Cash flows from (used for) financing activities: $312,000 Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities 132,000 180,000 47.760 Increase in cash Previous Check My Work