Judy’s Makeup Shops earned net income of $ 22,000, which included depreciation of $ 16,000. Judy’s acquired a $ 119,000 building by borrowing $ 119,000 on a long-term note payable.
1. How much did Judy’s cash balance increase or decrease during the year?
2. Were there any non-cash transactions for the company? If so, show how they would be reported in the statement of cash flows.