Requirement 1. Prepare the company's net cash provided by (used for) operating activities section of the statement of cash flows for the month of August. Use the indirect method. Do you see any potential problems in the company's cash flows from operations? How can you tell? Begin by completing the cash flows from operating activities section for the month of August using the indirect method. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Cash flows from operating activities: Adjustment to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities Do you see any potential problems in the company's cash flows from operations? How can you tell? Ashby shows collecting receivables and selling inventory. There is The in Accounts Payable indicates that the company Overall, operations generated a net cash flow, which is sign. i Data Table Cash Accounts Receivable Aug 1 50,000 Aug 1 Receipts Aug 31 460,000 Payments 445,000 Credit sales 65,000 1,000 540,000 Collections Aug 1 Inventory 3,000 Aug 31 101,000 440,000 Purchases Aug 31 438,000 Cost of Sales 336,000 105,000 Equipment Aug 1 181,000 Acquisition Aug 31 9,000 190,000 Accumulated Deprec.-Equipment Accounts Payable Aug 1 53,000 Depreciation Aug 31 10,000 Payments 63,000 Aug 1 332,000 Purchases 14,000 438,000 Aug 31 120,000 Accrued Liabilities Retained Earnings Aug 1 Payments 26,000 Accruals Aug 31 16,000 Quarterly 22,000 Dividend 12,000 Aug 1 60,000 16,000 Net Income 10,000 Aug 31 54,000 Print Done