Following are the income statement for 2010 and the balance sheets at year-ends 2009 and 2010 for Allied Enterprises Inc.

a. Prepare the managerial balance sheets for Allied Enterprises at year-ends 2009 and 2010

b. Prepare the company’s cash-flow statement for 2010 according to the direct method, and the indirect method to computing the net operating cash flow per

Standards No. 95 of the Financial Accounting Standards Board

Income Statement (in thousands)

2010

Net sales………………………………...............……….          $34,760

Cost of goods sold…………………………..............……       27,610

Selling, general, and administrative expenses……      5,500

Depreciation expense…………………………….................…   165

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Balance Sheet (in thousands) December 31, 2009 S 385 3,410 3,520 December 31 2010 S 330 4,620 4,730 Accounts receivable Inventories Prepaid expenses Net fixed assets Total assets Short-term debt Accounts payable Accrued Long-term debt Owners' equity Total liabilities and owners' equity 1,59.5 S11,275 S 2,100 2,255 1,430 $8,745 570 1,760 286 1,300 4,829 $8,745 385 expenses 1,200 5,335 S11,275