3. Given the financial information for the A.E. Neuman Corporation, Prepare a Statement of Cash Flows for the year ended December 31, 2007. A.E. Neuman Corporation - Year-end Balance Sheets ASSETS 2006 2007 Cash Marketable Securities Accounts Receivable Inventories Investments $ 45,000 175,000 240,000 230,000 70,000 S 50,000 160,000 220,000 275,000 55.000 Plant and Equipment Less Accumulated Depreciation Net Plant and Equipment 1,300,000 -450,000 850,000 1,550,000 -600,000 950,000 Total Assets $1,610,000 $1,710,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable $ 110,000 Notes Payable 65,000 Accrued Expenses 30,000 Income Taxes Payable 5,000 Bonds Payable 800,000 Common Stock (100,000 shares, $1 par) 100.000 Capital Paid in Excess of Par 100,000 Retained Earnings 400,000 Total Liabilities and Stockholders' Equity $1,610,000 A.E. Neuman Corporation Income Statement For Year Ended December 31, 2007 $ 85.000 10,000 5,000 10,000 900.000 100,000 100,000 500,000 $1,710,000 Sales Less: Cost of Goods Sold Gross Profit Less: Selling and Administrative Expense Operating Profit Less: Depreciation Expense Earnings Before Interest and Taxes Less: Interest Expense Earnings Before Taxes Less: Taxes (50%) Net Income Dividends Paid $5,500,000 4,200,000 1,300,000 260,000 1.040,000 150.000 890,000 90.000 800,000 400.000 $ 400,000 $ 300.000