1. The Carpet Company's 2009 and 2010 Balance Sheet and Income Statement are below. The firm also paid out dividends of $4,000 in 2010. Balance Sheet December 31 2010 2009 Assets Cash $10,500 $4,000 Accounts Receivable $8,000 $9,000 Merchandise Inventory $21,000 $18,000 Net PP&E $14,000 $12,000 Total Assets $53,500 $13,000 $5,000 $2,000 Liabilities and Equities Accounts Payable Taxes Payable Wages Payable Common Stock, $10 Par Paid-in-Capital, Common Stock Retained Eamings Total Liabilities & Equities $0 $7,000 $1,000 $1,500 $27,000 $6,000 $11,000 $53,500 $25,000 $5,000 $6,000 $43,000 Income Statement For the Year Ended December 31, 2010 Sales $61,000 Cost of Goods Sold Wages & Other Operating Expenses Depreciation Expense Income Tax Expense Total Expenses $40,000 $6,300 $1,500 $4,200 $52,000 Net Income $9,000 Required: A. Complete the Statement of Cash Flows template below. Carpet Company Sources and Uses of Cash 2010 Cash Flow from Operations: Net Income Add Back Depreciation OCE from Net Income Increases in Accounts Payable Increases in Wages Payable Decreases in Accounts Receivable Increases in Inventory Decreases in Taxes Payable Total Operating Cash Flows Cash Flows from Investing Increase in Net Fixed Assets Depreciation Total Investing Cash Flows Cash Flows from Financing Increase in Common Stock Increase in Paid-in-Capital Dividends Total Financing Cash Flows Change in Cash Balance