Piavies 2 n26 Cash Management 169 PASE 1. Which of the following would be included in cash and cash equivalents? @a REVIEW A. Petty cash fund B. Cash drawer C, operating checking account D. Bank certificates of deposit that mature in 2years E. All of the above except D 2. On the following form.complete the statement of cash flows for the year ending December 31, 2010, to determine cash flow from operations and changes in cash and cash equivalents, using the following data: 2010 depreciation was $20,000, accounts receivable were down by $10,000 from 12/31/09, and inventory, prepaid expenses, and accounts payable balances all increased by $1,000 from the prior year-end: Statement of Cash Flows For the Year Ending December 31, 2010 (With Comparative Data for 2009) December 31,2009 Operating Net Income $110,000 $100,000 Reconciliation of Net Income to Cash Flow: Add Back: Depreciation and Amortization (Increase Decrease in Accounts Receivable (Increase Decrease in Inventory (Increase/Decrease in Prepaid Expenses Increasel (Decrease) in Accounts Payable 20,000 10,000 (1,000) 1,500 2,000 Adjustments to Net Income NET CASH FLOW FROM OPERATIONS CASH & CASH EQUIVALENTS, 32,500 e $132 500 50,000 $182,500 BEGINNING OF YEAR CASH & CASH EQUIVALENTS, END OF YEAR Cash Flow Question A. continues