Examine the information presented below for Perfect Fit Clothing Store$$s first year of business.

The Vice President of Sales claims the organization had a fabulous first year based on the SCF$.$ The Controller disagrees noting this year was an operating failure and the statement was incorrectly presented with the $$109,000$ not representing an actual increase in cash.

In your initial post, note who you agree with providing explanations to support your position.

In your replies, note any errors presented and analyze the format of the SCF as presented. Perfect Fit Clothing

Statement of Cash Flows

For the Period Ended December $31,2016$

Sources of Cash

Sale of clothing $$382,000$

Sale of Capital Stock $380,000$

Sale of Investment $120,000$

Depreciation $80,000$

Issuance of Note for Truck $30,000$

Interest on Investments $8,000$

Total Sources of Cash $$1,000,000$

Uses of Cash

Purchase of Furniture and Fixtures $$330,000$

Purchase of Merchandise $($for resale$)253,000$

Operating Expenses $($includes depreciation$)170,000$

Purchase of Investment $95,000$

Purchase of Truck with a Note $30,000$

Purchase of Treasury Stock $3,000$

Total Uses of Cash $$891,000$

Net Increase in Cash $$109,000$ PLEASE PROVIDE AN EXPLANATION WHO IS CORRECT AND WHY.