Nick has also provided the following information: During the year the company raised $175,000 in new long-term debt and retired $151,000 in long-term debt. The company also sold $12,000 in new stock and repurchased $48,000 in stock. The company purchased $1,140,000 in fixed assets and sold $330,000 in fixed assets.
WARF COMPUTERS Income Statement ($ in thousands)
Sales Cost of goods sold Selling, general, and administrative expense Depreciation Operating income Other income EBIT $5,813 3,430 652 191 $1,540 58 $1,598 Interest expense Pretax income Taxes Current: $467 Deferred: 130 Net income Dividends Retained earnings 105 $1,493 597 $ 896 $ 225 $ 671 Angus has asked you to prepare the financial statement of cash flows and the accounting statement of cash flows. He has also asked you to answer the following questions:

a. How would you describe Warf Computers’ cash flows?

a. Which cash flow statement more accurately describes the cash flows at the company?

c. In light of your previous answers, comment on Nick’s expansion plans.