1) The following are the Balance Sheet and Income Statement for XYZ Corp.

			December 31st
			Year 0	Year 1
Balance Sheet:
Current Assets
Cash			$100,000	$132,000
Accounts Receivable				$85,000
Inventories			$95,000	$75,000
Total current assets			$195,000	$292,000
Noncurrent Assets
Land			$30,000	$30,000
Buildings			$200,000	$310,000
Equipment			$120,000	$130,000
Patent			$10,000	$10,000
Accumulated depreciation			($20,000)	($25,000)
Total noncurrent assets			$340,000	$455,000
		Total Assets	$535,000	$747,000
Current Liabilities
Accounts payable to suppliers			$100,000	$50,000
Income taxes payable				$20,000
Total current liabilities			$100,000	$70,000
Noncurrent Liabilities
Long term debt			$200,000	$250,000
Total liabilities			$300,000	$320,000
Shareholders Equity
Common Stock			$235,000	$327,000
Retained Earnings				$100,000
Total shareholders equity			$235,000	$427,000
Total Liabilities and Shareholders Equity			$535,000	$747,000
Income statement:
Sales			$335,000
Cost of goods sold			($95,000)
Depreciation expenses			($5,000)
Net interest expenses			($4,000)
Other expenses			($11,000)
Income before taxes			$220,000
Provision for income taxes			($80,000)
Net income			$140,000
Dividends paid			$40,000
Additions to retained earnings			$100,000

a) Looking at the changes in balance sheet accounts, prepare a sources and uses statement for XYZ in year 1.

b) Prepare a cash flow statement for XYZ in year 1.