126,905.97 Which item on the report might be classified differently? Project 2 L

Question

126,905.97

Which item on the report might be classified differently?

Project 2 Larry's Landscaping & Garden Supply 9:04 AM Statement of Cash Flows 12/15/2019 October 2018 through September 2019 Oct '18 - Sep 19 OPERATING ACTIVITIES Net Income -83,760.14 Adjustments to reconcile Net Income to net cash provided by operations: 1200 · Accounts Receivable -3,346.94 Prepaid Insurance -700.00 1300 · Inventory Asset -3,233.47 2000 · Accounts Payable -2,132.80 2100 · CalOil Card 1,256.49 Payments on Account -1,520.00 2102 · Payroll Liabilities 4,172.74 2300 · Sales Tax Payable 1,201.30 Net cash provided by Operating Activities -88,062.82 INVESTING ACTIVITIES 1500 · Truck:1520 · Accumulated Depreciation 575.00 Net cash provided by Investing Activities 575.00 FINANCING ACTIVITIES Bank of Anycity Loan 20,801.07 Equipment Loan 4,343.11 2400 · Bank Loan -7,154.82 3100 · Retained Earnings 43,954.66 3200 · Opening Bal Equity -67,600.63 Net cash provided by Financing Activities -5,656.61 Net cash increase for period -93,144.43 Cash at beginning of period 220,050.40 Cash at end of period

126,905.97

Explanation / Answer

The Above Cash flow statement is correctly prepared except for Accumulated Depreciation which is to be reported as an addition to the net income. Apart from Accumulated Depreciation, The statement is correct and the value of cash at the end of the period doesnot change with the change in movement of Accumulated Depreciation to Operating Activities from investing activities, but the cash flow from operating activities changes by +$575 and cash flow from investing activities changes by -$575.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.