The accounting records of the Ashby Trading Post Company include these accounts:

Requirement

1. Prepare the company’s net cash provided by (used for) operating activities section of the statement of cash flows for the month of July. Use the indirect method. Do you see any potential problems in the company’s cash flows from operations? How can you tell?

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Cash Accounts Receivable Inventory 4,000 Jul 1 40,000 Jul 1 Jul 1 Receipts 491,000| Payments 436,000 Credit sales 531,000 Collections 401,000 Purchases 1,000 402,000 | Cost of Sales 312,000 Jul 31 Jul 31 Jul 31 134,000 95,000 91,000 Accumulated Deprec.–Equipment Accounts Payable Jul 1 Equipment 185,000 Acquisition 12,000 197,000 Jul 1 Depreciation 11,000 Payments 334,000 Purchases 402,000 Jul 31 Jul 1 10,000 53,000 Jul 31 Jul 31 78,000 64,000 Accrued Liabilities Jul 1 32,000 Accruals 27,000 Dividend Jul 31 Retained Earnings Jul 1 22,000 Net Income 17,000 Jul 31 19,000 Quarterly 68,000 Payments 14,000 63,000