2. Prepare a statement of cash flows for the Zaid Corporation. (10.00marks) Zaid CORPORATION Income Statement For the Year Ended December 31, 2020 $2,200,000 1.300.000 900.000 Sales Cost of goods sold Gross profits Selling and administrative expense Depreciation expense Operating income Interest expense. Earnings before taxes... 420.000 150,000 330.000 90.000 240,000 Taxes... Earnings after taxes. Preferred stock dividends. Earnings available to common stockholders Shares outstanding Earnings per share 0.000 160,000 10.000 $ 150,000 120,000 s 1.25 Statement of Retained Earnings For the Year Ended December 31, 2020 Retained earnings, balance, January 1, 2008 $500,000 Add: Earnings available to common stockholders, 2008.. 150,000 Deduct: Cash dividends declared and paid in 2008 50,000 Retained earnings, balance, December 31, 2008 S600,000 Comparative Balance Sheets For 2007 and 2008 Year-End Year-End Assets 2019 2020 Current assets Cash $ 70,000 $100,000 Accounts receivable (net) 300.000 350.000 Inventory 410,000 430,000 Prepaid expenses 50.000 30.000 Total current assets 830,000 910,000 Investments (long-term securities) 80,000 70,000 Plant and equipment 2,000,000 2.400,000 Less: Accumulated depreciation 1.000.000 1.150.000 Net plant and equipment 100.000 1.250.000 Total assets SO10.000 $2200.000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 250,000 $440,000 Notes payable 400,000 400,000 Accrued expenses 70.000 50.000 Total current liabilities 720,000 890,000 Long-term liabilities: Bonds payable, 2008 70.000 120,000 Total liabilities 790,000 1,010,000 Stockholders' equity Preferred stock. $100 par value 90,000 90.000 Common stock, Si par value 120,000 120,000 Capital puid in excess of par 410,000 410.000 Retained earnings 500.000 600.000 Total stockholders' equity 1.120.000 1.220,000 Total liabilities and stockholders' equity S1.910.000 S2230.000