EX 16-18 Statement of cash flows-indirect method OBJ. 2 The following statement of cash flows for Shasta Inc. was not correctly prepared: Shasta Inc. Statement of Cash Flows For the Year Ended December 31, 2019 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 (used for) investing activities: Cash from sale of investments. $ 240,000 Cash used for purchase of land. (259,200) Cash used for purchase of equipment. (432,000) Net cash flow used for investing activities.. (415,200) Cash flows from (used for) financing activities: Cash from sale of common stock $ 312,000 Cash used for dividends (132,000) Net cash flow from financing activities 180,000 Increase (decrease) in cash.... $ 47,760 Cash at the end of the year. 192,240 Cash at the beginning of the year. $240,000 a. List the errors you find in the statement of cash flows. The cash balance at the begin- ning of the year was $240,000. All other amounts are correct, except the cash balance at the end of the year. b. Prepare a corrected statement of cash flows. EX 16-19 Cash flows from operating activities--direct method OBJ. 3 . 3 The cash flows from operating activities are reported by the direct method on the state- ment of cash flows Determine the following