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
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Cash flows from operating activities:
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Net income
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$266,544
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Adjustments to reconcile net income to met cash flow from operating activities:
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Depreciation
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75,600
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Gain on sale of investments
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12,960
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Change in current operating assets and liabilities
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Increase in accounts receivable
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20,520
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Increase in inventories
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(26,568)
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Increase in accounts payable
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(7,992)
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Decrease in accrued expenses payable
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(1,944)
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Net cash flow from operating activities
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$339,120
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