Using the financial statements below,

a. Compute common-size financial statements.

b. Put together a statement of cash flows of the firm. Where did the firm invest funds during the year? How did it finance these purchases? Income Statements for EastNorth Manufacturing, Inc.

Balance Sheets for Eastnorth Manufacturing, Inc.

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Years Ended December 31 2017 2016 Net revenues or sales $700,000 $600,000 Cost of goods sold 450,000 375,000 Gross profit 250,000 225,000 Operating expenses: General and administrative 95,000 95,000 Selling and marketing 56,000 50,000 Depreciation 25,000 20,000 Operating income 74,000 60,000 Interest 14,000 10,000 Income before taxes 60,000 50,000 Income taxes (40%) 24,000 20,000 Net income $36,000 $30,000 Number of shares outstanding 50,000 50,000 Earnings per share $0.72 $0.60