You are an experienced staff accountant working on the audit of RB Johnson Electric Company (the Company) as of and for the year ended December 31, 2022. All of the outstanding common stock of the Company is owned by Barry and Sam Johnson, who are brothers. The Company is engaged in commercial electrical construction on the East Coast of the United States. The Company was formed on January 1, 1947, and has been in continuous operation since that date. The Company employs approximately 100 people and has normal revenues between \$25 and \$35 million. The Company's bonding needs and its line of credit agreement, with Truist, require the financial statements to be audited. The Company has a very good Chief Financial Officer, who was at one time a manager with your firm. Your firm has audited the financial statements for the last 10 years. Adam Silvia is the engagement partner and Joey Sykes is the engagement manager. Based on some staffing issues, you have effectively been assigned the role of engagement senior on this client and you are excited to be working with Joey and having a number of increased responsibilities. The audit has been completed and you and Joey are getting ready to transmit the completed file to Adam for his review. The Company uses the accrual method of accounting and recognizes revenue on the percentage completion method of accounting. The Company's recent adoption of ASC 606 did not materially impact the Company's revenue recognition. The Company's trial balance, as of and for the year ended December 31, 2022, follows. Problem 5 (Review of Client Prepared Statements, Financial Statement Assertions) The CFO of the Company has prepared a DRAFT of the Company's statement of cash flows for the year ended December 31, 2022. As previously mentioned, the Company's CFO was a former manager with your firm and is qualified to prepare this statement. The DRAFT cash flow statement and the 2021 trial balance are set both below along with the Company's adjusted trial balance for the prior year. Joey has asked you to review the DRAFT statement, including agreeing the numbers to the current year and prior year trial balances. Required 1. By reference to the Company's 2021 and 2022 trial balances re-calculate the amounts appearing in the in the 2022 statement of cash flows, prepared by the Company's CFO, and note any differences. 2. Based on your review of the Company's 2022 statement of cash flows, including what you did in item 1 above, describe any additional issues that you may have with the DRAFT statement. 3. If any items are noted in items 1 or 2 above, describe that issue in the context of the appropriate financial statement assertion. BASE YOUR ANSWER ON THE COMPANY'S ORIGINAL TRIAL BALANCE AS OF AND FOR THE PERIOD ENDED DECEMBER 31, 2022. You are an experienced staff accountant working on the audit of RB Johnson Electric Company (the Company) as of and for the year ended December 31, 2022. All of the outstanding common stock of the Company is owned by Barry and Sam Johnson, who are brothers. The Company is engaged in commercial electrical construction on the East Coast of the United States. The Company was formed on January 1, 1947, and has been in continuous operation since that date. The Company employs approximately 100 people and has normal revenues between \$25 and \$35 million. The Company's bonding needs and its line of credit agreement, with Truist, require the financial statements to be audited. The Company has a very good Chief Financial Officer, who was at one time a manager with your firm. Your firm has audited the financial statements for the last 10 years. Adam Silvia is the engagement partner and Joey Sykes is the engagement manager. Based on some staffing issues, you have effectively been assigned the role of engagement senior on this client and you are excited to be working with Joey and having a number of increased responsibilities. The audit has been completed and you and Joey are getting ready to transmit the completed file to Adam for his review. The Company uses the accrual method of accounting and recognizes revenue on the percentage completion method of accounting. The Company's recent adoption of ASC 606 did not materially impact the Company's revenue recognition. The Company's trial balance, as of and for the year ended December 31, 2022, follows. Problem 5 (Review of Client Prepared Statements, Financial Statement Assertions) The CFO of the Company has prepared a DRAFT of the Company's statement of cash flows for the year ended December 31, 2022. As previously mentioned, the Company's CFO was a former manager with your firm and is qualified to prepare this statement. The DRAFT cash flow statement and the 2021 trial balance are set both below along with the Company's adjusted trial balance for the prior year. Joey has asked you to review the DRAFT statement, including agreeing the numbers to the current year and prior year trial balances. Required 1. By reference to the Company's 2021 and 2022 trial balances re-calculate the amounts appearing in the in the 2022 statement of cash flows, prepared by the Company's CFO, and note any differences. 2. Based on your review of the Company's 2022 statement of cash flows, including what you did in item 1 above, describe any additional issues that you may have with the DRAFT statement. 3. If any items are noted in items 1 or 2 above, describe that issue in the context of the appropriate financial statement assertion. BASE YOUR ANSWER ON THE COMPANY'S ORIGINAL TRIAL BALANCE AS OF AND FOR THE PERIOD ENDED DECEMBER 31, 2022