I need help with this discussion question.

Examine the information presented below forPerfect Fit Clothing Store'sfirst 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.

In your replies, note any errors presented and analyze the format of the SCF as presented.

Perfect Fit Clothing

Statement of Cash Flows

For the Period Ended December 31, 2016

Sources of Cash

Sale of clothing$382,000

Sale of Capital Stock380,000

Sale of Investment120,000

Depreciation 80,000

Issuance of Note for Truck30,000

Interest on Investments8,000

Total Sources of Cash$1,000,000

Uses of Cash

Purchase of Furniture and Fixtures$330,000

Purchase of Merchandise (for resale)253,000

Operating Expenses (includes depreciation) 170,000

Purchase of Investment95,000

Purchase of Truck with a Note30,000

Purchase of Treasury Stock3,000

Total Uses of Cash$891,000

Net Increase in Cash$109,000