the following statement of cash flows is incorrectly presented analyze this statemen 4375665

The following statement of cash flows is incorrectly presented. Analyze this statement and explain the problems you found. Do not prepare a new statement. ILCISIN COMPANY Statement of Cash Flows As of December 31, 2010 Sources (inflows) of cash: Net income ………………….. $ 88,000 Add (deduct) items to convert from the accrual to cash basis: Depreciation ………………….. 15,800 Inventory increase ………………. 10,000 Prepaid expense increase …………….. (4,000) Extraordinary gain on land …………… (36,000) Extraordinary loss on bonds …………… (2,000) Accounts receivable increase ……………. (60,000) Accounts payable increase ……………. 30,000 Amortization of bond discount …………….. 200 Wages payable decrease ………………. 3,000 Cash inflows from operations ………….. $ 45,000 Sales of land …………………. 106,000 Issuance of bonds ………………… 10,000 Total sources of cash ……………… $ 171,000 Uses (outflows) of cash: Cash dividends ……… $ 30,000 Machinery purchased ………………. 20,000 Common stock issued to retire bonds ………… 42,000 Preferred stock issued to purchase building ……… 20,000 Purchase of trading securities ……………. 10,000 Total uses of cash ……………….. 122,000 Increase in cash ……………….. $ 39,000 View Solution:
The following statement of cash flows is incorrectly presented Analyze

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