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Instructions: Answer the following. i. Highlight all the mistakes if any in the above cash flows statement. ii. Did investing activities cause the companys cash to increase or decrease? Why is it so? iii. Why net cash balance from investing activities is mostly negative? iv. Which GAAP principle is clearly reflecting from above statement? v. Explain that GAAP principle figured out in (vii)? vi. Why owner invested 80,000 dollars? Why there is no dollar sign with this amount? vii. What do we have to do with final balance? viii. What is the reason of mentioning investing activities in the middle? ix. What is the reason of mentioning the financing activities in the end? Why not to mention at the top! x. Is there any major concern? Or All is well after rectifying mistakes?

$800 Question 2: (15 Marks) OVERNIGHT AUTO SERVICE Statment of Cash Flows. For the Month Ended November 30-11-2020 Cash flows from operating activities: Cash received from revenue transactions $2,000 Cash paid for expenses (1,400) Net cash provided by operating activities Cash flows from investing activities: Purchase of Land $(52,000) Purchase of building (6,000) Payment for the purchase of tools (6,800) Collection for sale of tools 600 Net cash provided by operating activities Cash flows from financing activities: Investment by owner Increase in cash for the month Cash balance, Nov 1, 2020 Cash balance, Nov 30, 2020 (64,200) 80,000 $16,600 400 $16,999 Page 1 of 2 $800 Question 2: (15 Marks) OVERNIGHT AUTO SERVICE Statment of Cash Flows. For the Month Ended November 30-11-2020 Cash flows from operating activities: Cash received from revenue transactions $2,000 Cash paid for expenses (1,400) Net cash provided by operating activities Cash flows from investing activities: Purchase of Land $(52,000) Purchase of building (6,000) Payment for the purchase of tools (6,800) Collection for sale of tools 600 Net cash provided by operating activities Cash flows from financing activities: Investment by owner Increase in cash for the month Cash balance, Nov 1, 2020 Cash balance, Nov 30, 2020 (64,200) 80,000 $16,600 400 $16,999 Page 1 of 2