Prepare a statement of cash flows for the Seagull Corporation. Follow the general procedures indicated in Table your textbook.
SESAGULL CORPORATION
Income statement
For the year ended December 31, 2008
Sales ....................... $2,200,000
Cost of goods sold .................. 1,300,000
Gross profits ..................... 900,000
Selling and administrative expenses ............ 420,000
Depreciation expense .................. 150,000
Operating income ........................ 330,000
Interest expense ........................ 90,000
Earnings before taxes ................. 240,000
Taxes ....................... 80,000
Earnings after taxes ................. 160,000
Preferred stock dividends ................ 10,000
Earnings available to common stockholders ....... $ 150,000
Shares outstanding .................. 120,000
Earnings per share ................... $1.25

Statement of Retained Earnings
For the year ended December 31,2008
Retained earning, balance, January 1, 2008............. $ 500,000
Add; earning available to common stockholders, 2008...... 150,000
Deduct; cash dividends declared and pain in 2008 ........ 30,000
Retained earnings, balance, December 31, 2008 ....... $620,000

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Year-End Year-End Assets Current assets 2007 2008 S 70,000 300,000 410.000 50,000 830,000 80,000 2,000,000 1,000,000 1,000,000 1,910,000 S2,220,000 S 105,000 330,000 450,000 35,000 920,000 50,000 2,400,000 1,150,000 1,250,000 as Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments (ong-term securities) Plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Current liabilities Accounts payable Notes payable Accrued expenses Total curent liabilities Long-tem liabilities Bonds payable, 2008 Total liabilities Stockholders' equity: Prefered stock, S100 par value Common stock, S1 par value S250,000 400,000 70,000 720,000 S450,000 400,000 30,000 8S0,000 70,000 790,000 100,000 980,000 90,000 120,000 410,000 500,000 1,120,000 S1,910,000 90,000 120,000 410,000 620,000 1,240,000 S2, 220,000 Capital paid in e xcess of par Retained eamings Total stockholders' equity Total liabilities and stockholders' equity