Required a) Identify the problems with the statement of cash flows that the accounting clerk prepared. b) Prepare a corrected statement of cash flows. (8) fap 5th workbook se.pdf - Adobe Acrobat Pro (64-bit) w E-Sign Window Help Home Tools fap 5th workbook s... Q (1) 098 (1102 of 1158) b) Prepare a corrected statement of cash flows. \begin{tabular}{|l|l|l|} \hline \multicolumn{5}{|l|}{} \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \end{tabular} 1098 $ fap 5th workbook se.pdf - Adobe Acrobat Pro (64-bit) File Edit View E-Sign Window Help Home Tools fap 5th workbook s... - Cash balance on December 31, 2023, was $335,280 The statement of cash flows the accounting clerk prepared is shown below. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{c} Ina Shores Inc. \\ Statement of Cash Flows \\ For the Year Ended December 31, 2023 \end{tabular}} \\ \hline \multicolumn{3}{|l|}{ Cash Flow from Operating Activities } \\ \hline Net Income & $328,280 & \\ \hline \multicolumn{3}{|l|}{ Adjustments to Reconcile Net Income to Net Cash } \\ \hline \multicolumn{3}{|l|}{ Provided (Used) by Operating Activities } \\ \hline Depreciation Expense & 30,600 & \\ \hline \multicolumn{3}{|l|}{ Changes in Operating Assets and Liabilities } \\ \hline Increase in Accounts Receivable & 62,800 & \\ \hline Decrease in Merchandise Inventory & (77,400) & \\ \hline Increase in Accounts Payable & 82,200 & \\ \hline Sale of Equipment & 72,000 & \\ \hline Purchase of Equipment & (500,000) & \\ \hline Net Cash Provided (Used) by Operating Activities & & ($1,520) \\ \hline \multicolumn{3}{|l|}{ Cash Flow from Investing Activities } \\ \hline Proceeds from Notes Payable & 110,000 & \\ \hline Net Cash Provided (Used) by Investing Activities & & 110,000 \\ \hline \multicolumn{3}{|l|}{ Cash Flow from Financing Activities } \\ \hline Payment of Cash Dividend & (100,000) & \\ \hline Proceeds from Issuance of Common Stock & 100,000 & \\ \hline Net Cash Provided (Used) by Financing Activities & & 0 \\ \hline Net Increase (Decrease) in Cash & & 108,480 \\ \hline Cash at the Beginning of the Year & & 229,600 \\ \hline Cash at the End of the Year & & $338,080 \\ \hline \end{tabular} 1097 Chapter 19 The Statement of Cash Flows Ina Shores Inc. specializes in making cherrywood bookcases. A new accounting clerk has compiled the following information to prepare the statement of cash flows for the year ended December 31, 2023: - Net income for the year was $328,280. - Depreciation expense was $30,600. - Equipment was sold for a gain of $32,000. Cash proceeds from the sale were $72,000. - Equipment was purchased for $500,000. - Dividends of $100,000 were paid. - Accounts receivable increased by $62,800. - Merchandise inventory decreased by $77,400. - Accounts payable increased by $82,200. - Notes payable increased by $110,000. - Common stock was sold for $100,000 (also its book value). - Cash balance on January 1, 2023, was $229,600. - Cash balance on December 31, 2023, was $335,280. CH 19 case study TEMPLATE V5.0 Saved to this PC File Home Insert Page Layout Formulas Data Review View Automate Help Acrobat A1 :Xfx ACC 231- CH 19 Case Study - CS-1 on Workbook pp 1097-1098 \begin{tabular}{|c|c|c|c|} \hline & A & B & c \\ \hline 1 & \multicolumn{3}{|c|}{ ACC 231 - CH 19 Case Study - CS-1 on Workbook pp 1097-1098 } \\ \hline 2 & & & \\ \hline 3 & \multicolumn{2}{|c|}{ Information provided: } & \\ \hline 4 & & & \\ \hline 5 & & \multicolumn{2}{|l|}{ Net income 328280} \\ \hline 6 & & \multicolumn{2}{|l|}{ Depreciation expense 30600} \\ \hline 7 & & \multicolumn{2}{|c|}{ Equipment sold for a gain of 32000 with cash proceeds of 72000} \\ \hline 8 & & \multicolumn{2}{|l|}{ Equipment purchased for 500000} \\ \hline 9 & & \multicolumn{2}{|l|}{ Dividends paid 100000} \\ \hline 10 & & \multicolumn{2}{|l|}{ Accounts Receivable increased by 62800} \\ \hline 11 & & \multicolumn{2}{|l|}{ Merchandise Inventory decreased by 77400} \\ \hline 12 & & \multicolumn{2}{|l|}{ Accounts Payable increased by 82200} \\ \hline 13 & & \multicolumn{2}{|l|}{ Notes Payable increased by 110000} \\ \hline 14 & & \multirow{2}{*}{\multicolumn{2}{|c|}{ Common Stock sold for 100000 at book value }} \\ \hline 15 & & & \\ \hline 16 & & \multicolumn{2}{|l|}{ Cash at 12/31/2023 is 335280} \\ \hline \end{tabular} Errors: This is the incorrect report that needs to be corrected: Part b - Prepare a corrected Statement of Cash Flows \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{\begin{tabular}{l} Ina Shores Inc. \\ Statement of Cash Flows - as prepared \\ For the Year Ended December 31, 2023 \end{tabular}} \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Cash Flow from Operating Activities \\ \end{tabular}} \\ \hline Net Income & \begin{tabular}{|lr} 5 & 328,280 \\ \end{tabular} & \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Adjustments to Reconcile Net Income to Net Cash \\ Provided (Used) by Operating Activities \end{tabular}} \\ \hline Depreciation Expense & 30,600 & \\ \hline \multicolumn{3}{|l|}{ Changes in Operating Assets and Liabilities } \\ \hline Increase in Accounts Receivable & 62,800 & \\ \hline Decrease in Merchandise Inventory & (77,400) & \\ \hline Increase in Accounts Payable & 82,200 & \\ \hline Sale of Equipment & 72,000 & \\ \hline Purchase of Equipment & s (500,000) & \\ \hline \begin{tabular}{|l|} Net Cash Provided (Used) by Operating Activities \\ \end{tabular} & & (1,520) \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Cash Flow from Investing Activities \\ \end{tabular}} \\ \hline & & \\ \hline Proceeds from Notes Payable & $110,000 & \\ \hline Net Cash Provided (Used) by Investing Activities & & $110,000 \\ \hline \multicolumn{3}{|l|}{\begin{tabular}{l} Cash Flow from Financing Activities \\ \end{tabular}} \\ \hline Payment of Dividends & \begin{tabular}{|cc|} s & (100,000) \\ \end{tabular} & \\ \hline Proceeds from Issuance of Common Stock & $100,000 & \\ \hline \begin{tabular}{|l|} Net Cash Provided (Used) by Financing Activities \\ \end{tabular} & & 5 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Ina Shores Inc. } \\ Statement of Cash Flows - corrected \\ For the Year Ended December 31, 2023 \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} CH19CS1 Part a - Identify the problems with the Statement of Cash Flows that the accounting clerk prepared. (Hint: there are a total of 6 errors to find and correct.) \begin{tabular}{|l|l|l|} \hline \multicolumn{3}{|c|}{ Ina Shores Inc. } \\ Statement of Cash Flows - corrected \\ For the Year Ended December 31, 2023 \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Comments Share 1