Maya Chen's CoLab social media firm just wrapped its first full year. An investor is ready to commit — but wants to see the Statement of Cash Flows first. Maya needs someone who can classify her transactions, build her operating section with her CPA, and explain what the numbers reveal. That's you.
What to Expect
1
Classify — Drag CoLab's transactions into Operating, Investing, and Financing. Pattern reasoning checkpoints after each group.
2
Build — Help Maya meet with her CPA, Dr. Okafor, to understand the indirect method. Then complete the operating section.
3
Analyze — Use Maya's actual numbers to identify the gap between net income and operating cash flow, then diagnose CoLab's growth story.
Please enter at least two characters.
Cash Flow Statement
Concept Check •
Maya says: "CoLab had a busy year. Help me classify each transaction into the right section of the Statement of Cash Flows. After every three, I'll ask what the pattern tells us."
Transaction Classifier
Drag each transaction to the correct section. Two attempts per item.
Drag each card from the left into the correct drop zone. Wrong answers get one hint and a second attempt. Keyboard users: press Space or Enter on a card to select it, then use the Place selected card here button in the section you choose. Escape cancels.
Sorted: 0 / 9Points: 0 / 18
CoLab Transactions
Operating Activities
Investing Activities
Financing Activities
Maya says: "I've been staring at these numbers and some of them don't make sense to me. My CPA, Dr. Okafor, is helping me understand why we adjust net income the way we do. She is walking me through each one."
Indirect Method: Operating Section
Read Maya's conversation with Dr. Okafor, then select the correct direction for each adjustment.
CoLab's net income was $42,000. For each blank row, read the dialogue first — then select whether the item Adds to, Subtracts from, or has No Effect on operating cash flow. Dollar amounts reveal after you answer.
Completed: 0 / 6Points: 0 / 12
Line Item
Amount
Your Answer
Result
Operating section complete! CoLab's net cash from operating activities: $27,000
Maya says: "My investor meeting is next week. Help me understand what this statement actually reveals — not just the numbers, but the story they tell."
Question 1 of 2 — Point to the Culprits
Drag the two adjustments that most explain the gap into the slots below.
Maya's net income is $42,000 but her operating cash flow is $27,000 — a gap of $15,000. Drag the two adjustments most responsible for this gap into the answer slots.
CoLab's adjustments: Depreciation +$8,000 • AR increase −$14,000 • AP increase +$3,000 • Gain on equipment −$12,000 • Prepaid decrease +$2,000 • Unearned Revenue decrease −$4,000
Answer Pool
Culprit 1
Culprit 2
Points: 0 / 2
Question 2 of 2 — Diagnose the Story
Complete Question 1 to unlock.
🔒
Complete Question 1 to unlock.
CoLab's completed Statement of Cash Flows shows these three totals. Drag the answer that best describes CoLab's growth stage.
Operating
+$27,000
Investing
−$18,000
Financing
+$9,000
Answer Pool
CoLab's growth stage is...
Points: 0 / 2
Maya says: "Before you see your score, take a moment to reflect. Your score reveals itself after you've thought it through."
Reflection
Read both prompts, then write your response. Minimum 40 characters.
Consider both of these as you write:
What did Maya's cash flow statement reveal about CoLab that net income alone could not tell you?
What concept from this concept check surprised you most about how businesses actually work?
