Cash Flows Ritter Corporation’s accountants prepared the following financial statements for year-end 2012:

a. Explain the change in cash during 2012.

b. Determine the change in net working capital in 2012.

c. Determine the cash flow generated by the firm’s assets during 2012.

RITTER CORPORATION Income Statement 2012 Revenue Expenses Depreciation Net income Dividends

$750 565 90

$ 95

$ 75 RITTER CORPORATION Balance Sheets December 31 Assets Cash Other current assets Net fixed assets Total assets Liabilities and Equity Accounts payable Long-term debt Stockholders’ equity Total liabilities and equity 2012 $ 65 170 390 $ 625 $125 145 355 $625 2011 $ 55 165 370 $590 $115 140 335 $590