26. At the close of 20X3, the financial statements of Northern Manufacturing were as follows.

In addition, Northern paid dividends of $1.2 million and sold new stock valued at $1.0 million in 20X3. Use the CASHFLO program to produce Northern’s statement of cash flows for 20X3.

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Northern Manufacturing Balance Sheet For the period ended 12/31/x3 ($000) Northern Manufacturing Income Statement For the period ended 12/31/x3 ($000) ASSETS Sales $22,560 12/31/X1 12/31/X2 COGS 11,506 Cash $ 500 $ 200 Gross margin $11,054 Accounts receivable 6,250 7,300 Expense 5,332 Inventory 5,180 6,470 Depreciation 700 CURRENT ASSETS $11,930 $13,970 EBIT $ 5,022 Fixed assets Interest 1,180 Gross EBT $ 7,500 $9,000 $ 3,842 Accumulated deprec. (2,400) (3,100) Tax 1,537 Net Net income $ 5,100 $5,900 $ 2,305 TOTAL ASSETS $17,030 $19,870 LIABILITIES Accounts payable $1,860 $2,210 Accruals 850 220 CURRENT LIABILITIES $ 2,710 $ 2,430 Long-term debt $11,320 $12,335 Equity 3,000 5,105 TOTAL CAPITAL $14,320 $17,440 TOTAL LIABILITIES AND EQUITY $17,030 $19,870