This is my Cash Flow statement:

I have used Direct Method. Now, the problem is that Net increase/decrease in cash is coming: $226,000 whereas it should be $241,000 (because, Ending cash balance - Beginning cash balance = 821,000 - 580,000 = $241,000) . Please tell me what is wrong and also show correct calculations for any thing that I have done wrong.

11-4B-Cash Flow Statement - Challenging Problem The financial statements of Wilson Inc. are presented below: Wilson Inc. Balance Sheet As at October 31 Cash Accounts receivable Inventory Prepaid insurance Building and equipment Accumulated depreciation Total assets 2024 $821,000 375,000 850,000 30,000 3,512,000 (1,940,000) $3.648.000 2023 $580,000 350,000 880,000 38,000 3,400,000 (1,800,000) $3.448.000 Accounts payable Salaries payable Dividends payable Interest payable Unearned revenues Income taxes payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $450,000 100,000 65,000 25,000 200,000 40,000 1,400,000 90,000 1.278,000 $3.648.000 $500,000 120,000 50,000 15,000 180,000 25,000 1,100,000 50,000 1.408.000 $3.448.000 Wilson Inc. Income Statement For the Year Ended October 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $1,500,000 580,000 920,000 680,000 240,000 85.000 155,500 35.000 $120,000 Additional information: 1.) Operating expenses are composed of. Depreciation $200,000; Salaries $420,000; Gain on Sale of Equipment $15,000; other operating expenses $75,000. 2.) Prepaid insurance is related to the other operating expenses. 3.) Equipment was purchased during the year for $200,000 cash. 4.) Equipment was sold for cash during the year. 5.) Dividends were declared and paid during the year. 6.) Unearned revenues are collected from customers. 7.) Paid off $100,000 of bank loan and signed a new loan for additional cash. Required: Prepare a cash flow statement using the direct method or indirect method or both (depending on what your instructor assigns). Cash collected from customers = Sales revenue + Decrease in A/R + Increase in Unearned revenues = 1,500,000 + (-25,000) + 20,000 Cash paid for merchandise = COGS + Increase in inventory+ Decrease in A/P = 580,000 + (-30,000) + 50,000 Cash paid for salaries = Salaries exp + Salaries payable = 420,000 + 20,000 Cash paid for other operating expenses = 75,000 + Increase in prepaid insurance = 75,000 + (-8,000) Cash paid for interest = interest exp + decrease in interest payable = 85,000 + (-10,000) Cash paid for Income taxes = Income taxes exp + Income taxes payable = 35,000 + (-15,000) = $1,495,000 = (600,000) = (440,000) = (67,000) = (75,000) = (20,000) Net Cash inflow/outflow from Operating Activities = $293, 000 Cah paid for equipment Cash received on the sale of equipment Cash paid for investments Cash received on the sale of investments = (200,000) = 43,000 = 0 = 0 Net Cash inflow/outflow from Investing Activities = $(157,000) Cash paid for reduction of Bonds/Long-term debts Cash received from issuance of Bonds/Long-term debts Cash received from issuance of shares Cash received from redeemption of shares Cash Paid for Dividends = change in [Bank Loan Payable] + Paid debt amount = [1,400,000 - 1,100,000] + 100,000 = change in (Common Shares] = 90,000 - 50,000 = (100,000) = 400,000 = 40,000 = 0 = (250,000) = [R/E at beginning +Net.Income] - R/E at year-end = [1,408,000 + 120,000] - 1,278,000 Net Cash inflow/outflow from Financing Activities = $90,000 Net increase/decrease in cash = 293,000 - 157,000 +90,000 = $226,000 Cash Balance, Beginning of the year Cash Balance, End of the year = $580,000 = $821,000 Historical cost of equipment sold = [Beginning Historical Cost of equipment - Ending Historical Cost of Equipment] - [Beginning Accumulated Depreciation + Depreciation expense for the period - Ending Accumulated Depreciation] + Purchase amount of equipment = [3,400,000 - 3,512,000] - [1,800,000 + 200,000 - 1,940,000] + 200,000 = $28,000 Cash Received on the sale of equipment = Historical Cost of equipment sold + Gain on sale of equipment = 28,000 + 15,000 = $43,000