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Shasta Inc. Statement of Cash Flows For the Year Ended December 31, 20y9 Cash flows from operating activities: Net income $360,000 Adjustments to reconcile net

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Shasta Inc. Statement of Cash Flows For the Year Ended December 31, 20y9 Cash flows from operating activities: Net income $360,000 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts recelvable Increase in inventories Increase in accounts payable 100,80017,280 Decrease in accrued expenses payable Net cash flow from operating activities $463,440 Cash flows from (used for) investing activities: Cash from sale of investments Cash used for purchase of land Cash used for purchase of equipment Net cash flow used for investing activities (415,200) Cash flows from (used for) financing activities: Cash recelved from sale of common stock Cash paid for dividends Net cash flow from financing activities Increase in cash $312,000132,000 $47,760180,000 Item tre romowing questions. Use your answers to help you in locating errors for the above statement of cash flows. ltem b. Enker the corrected amounts below. Use the minus sign to indicate cash outfows, cash paymenta, decreases in cash, or any negative adjustinents. Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and kiabilities: Increase in accounts receivable v increase in inventories Increage in accounts payable Decrease in accried expentes payatile Net cash flow from operating activities Cash flows from (used for) investing activities: Cash from sale of invostments * 5ash used for purchase of land v Cash used for purchase of equipment = Net cash flow from investing activities Cash flows from (used for) finaneing activities: Cash from sale af common stock Gish used for dividends = Net cash fiow from financing activities increase in cash v Cash at the beginning of the year Cash at the end of the year

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