Teresa Ramirez and Lenny Traylor are examining the following statement of cash flows for Pina Clothing Stores first year of operations.

PINA CLOTHING STORE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JANUARY 31, 2020
Sources of cash
	From sales of merchandise		$	380,000
	From sale of common stock			379,000
	From sale of investment			124,000
	From depreciation			77,000
	From issuance of note for truck			28,000
	From interest on investments			7,900
	Total sources of cash			995,900
Uses of cash
	For purchase of fixtures and equipment			328,000
	For merchandise purchased for resale			251,000
	For operating expenses (including depreciation)			168,500
	For purchase of investment			94,000
	For purchase of truck by issuance of note			28,000
	For purchase of treasury stock			11,000
	For interest on note			2,800
	Total uses of cash			883,300
Net Increase in Cash			$	112,600

Teresa claims that Pinas statement of cash flows is an excellent portrayal of a superb first year, with cash increasing $112,600. Lenny replies that it was not a superb first yearthat the year was an operating failure, the statement was incorrectly presented, and $112,600 is not the actual increase in cash.

Initial post:

Answer the following questions.

1. With whom do you agree, Teresa or Lenny? Explain your position.
2. Is the statement of cash flows in the correct format?
   1. What are cash flows from Operating Activities?
   2. What are cash flows from Investing Activities?
   3. What are cash flows from Financing Activities?