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Statement of cash flows - indirect method
List the errors you find in the following statement of cash flows. The cash balance at the beginning of the year was $180,576. All other amounts are correct, except the cash balance at the end of the year.
Hough Inc.
Statement of Cash flows
For the Year Ended December 31, 2012
Cash flows from operating activities:
Net income
$266,544
Adjustments to reconcile net income to met cash flow from operating activities:
Depreciation
75,600
Gain on sale of investments
12,960
Change in current operating assets and liabilities
Increase in accounts receivable
20,520
Increase in inventories
(26,568)
Increase in accounts payable
(7,992)
Decrease in accrued expenses payable
(1,944)
Net cash flow from operating activities
$339,120
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