Examine the information presented below for Perfect Fit Clothing Store?s first year of business. The Vice President of Sales claims the organization had a fabulous first year based on the SCF. The Controller disagrees noting this year was an operating failure and the statement was incorrectly presented with the $109,000 not representing an actual increase in cash. In your initial post, note who you agree with providing explanations to support your position.

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Perfect Fit Clothing Statement of Cash Flows For the Period Ended December 31, 2016 Sources of Cash Sale of Clothing Sale of Capital Stock Sale of Investment Depreciaiton Issuance of Not for Truck Interest on Investments Total Sources of Cash Uses of Cash Purchase of Furniture and Fixtures Purchase of Merchandise (for resale) Operating Expenses (includes depreciation) Purchase of Investment Purchase of Truck with a Note Purchase of Treasury Stock Interest on Note Total Uses of Cash Net Increase in Cash $382,000 380,000 120,000 80,000 30,000 8,000 $1,000,000 $330,000 253,000 170,000 95,000 30,000 10,000 3,000 $891,000 $109,000 Perfect Fit Clothing Statement of Cash Flows For the Period Ended December 31, 2016 Sources of Cash Sale of Clothing Sale of Capital Stock Sale of Investment Depreciaiton Issuance of Not for Truck Interest on Investments Total Sources of Cash Uses of Cash Purchase of Furniture and Fixtures Purchase of Merchandise (for resale) Operating Expenses (includes depreciation) Purchase of Investment Purchase of Truck with a Note Purchase of Treasury Stock Interest on Note Total Uses of Cash Net Increase in Cash $382,000 380,000 120,000 80,000 30,000 8,000 $1,000,000 $330,000 253,000 170,000 95,000 30,000 10,000 3,000 $891,000 $109,000

Answer rating: 100% (QA)

Yes I agree with the Vice President of Sales claim that the organization had a fabulous first year b... View the full answer