Small Appliance Parts, Inc

Cash Flow Statement $($indirect method$)$

Beginning cash $$8,133$

Operating Activity Cash Flow

Net profit $ $(791)$

Add depreciation $ $537$

Accounts receivable $$(694)$

Inventory $ $(3,349)$

Prepaid expenses $ $633$

Accounts payable $ $547$

Accrued wages $ $1,140$

Short$-$term Bank Debt $ $0$

Total Operating Cash flow $ $(1,977)$

Asset Activity Cash Flow

Plant, Prop, Equip $ $(5,700)$

Other Long$-$term Assets $ $0$

Total Asset Activity $ $(5,163)$

Financing Activity Cash Flow

Owner Investment $ $0$

Bank Loan Payable $ $5,700$

Total Financing activity $ $5,700$

Ending Cash $ $6,156$

Based on the information above;

What two accounts caused the largest cash reductions? For the accounts indentified what could have been a possivble operating activity that might have occurred during the quarter to cause cash reductions? For each account what should managers be monitoring in the next quarter?