Answer (A) is correct . A statement of cash flows reports cash flows from operating activities, investing activities, and financing activities. Combining the $400,000 of cash provided by operating activities with the $10,000 use for investing activities and $278,000 use for financing activities results in a net source of cash of $112,000 ($400,000 – $10,000 – $278,000).
Answer (B) is incorrect because Failing to deduct the purchase of treasury stock results in $252,000.
Answer (C) is incorrect because Adding rather than deducting the treasury stock purchase results in $392,000.
Answer (D) is incorrect because Adding the uses of cash rather than deducting them results in $688,000.
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Heniser’s net cash flow, assuming that it reported net cash provided by operating activities of $400,000, is
