USA Easy Statement of Cash Flows... but not coming out correctly

[Alex LaPorta]

HI All,

I've included a picture featuring an excel Statement of Cash Flows schedule that I did.

I am 100% sure about the numbers and I thought I made my schedule formulas fool-proof (they've worked without fail in the last three problems).

In this problem though, I am coming up with a $6000 deficiency in the Statement of Cash Flow versus the change in cash from the Balance Sheet.

I think there's an error in this problem that's making it impossible to solve, but I could be wrong. At first, I thought it could be a calculation that wasn't included in the Fixed Assets (Net), except the Fixed Assets (Net) increases by $4,000, and there's a $10,000 purchase, and $6,000 depreciation, so that matches.

If I am making a mistake here, I'm just not seeing it. Thanks for reading!

 

[Triest123]

The increase in account payable of $3,000 should be added to operating cash flow

 

[Alex LaPorta]

I did. That's part of the calculation.

 

[Triest123]

Net Income 12,000
Add : Depreciation 6,000
Decrease in Account receivable 3,000
Decrease in Inventory 6,000
Increase in Accounts payable 3,000
Less : Decrease in Wages pable (200)
Net cash from Operations 29,800

 

[Alex LaPorta]

Thank you, I see the error now,. I wrote the increase in payables as a decrease. Sometime you just need an extra set of eyes on things.