3. Given the following balance sheets and income statement for Genesis Enterprises, Inc.: a. Develop a cash flow statement. b. Discuss why the cash position of the company is different from the profit of the company. Specifically, note that net profit was $425, but the cash account stayed the same. Cash Accounts receivable Inventory Fixed assets (Accumulated depr.) Total GENESIS ENTERPRISES, INC. BALANCE SHEET - 12/31/12 1000'S) $500 Accounts payable 750 Operating accruals 400 Debt 1,000 Common stock 400 Retained earnings $2,250 Total $200 300 1,000 500 250 $2,250 Cash Accounts receivable Inventory Fixed assets (Accumulated depr.) Total GENESIS ENTERPRISES, INC. BALANCE SHEET - 12/31/13 (000'S) $500 Accounts payable 2,000 Operating accruals 600 Debt 1,000 Common stock 700 Retained earnings $3,400 Total $950 275 1,000 500 675 $3,400 GENESIS ENTERPRISES, INC. INCOME STATEMENT 1/01/13-12/31/13 Sales $9,000 Cost of goods sold 4,500 Gross profit 4,500 Operating expenses: Salaries, Advertising, etc. 3,500 Depreciation 300 Operating profit 700 Interest 100 Taxes 175 Net profit 425 Dividends 0 Addition to retained earnings 425