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7. Below, youll find selected items from financial statements that span the year 2018 for Arcade Fireplaces, Inc. These numbers are also in the workbook

7. Below, youll find selected items from financial statements that span the year 2018 for Arcade Fireplaces, Inc. These numbers are also in the workbook that you downloaded for problem #1; you should use the sheet in that workbook so that you do not have to type in all of the following information from scratch. (a, 9 points) Calculate Operating Cash Flow, Net Working Capital, Net Capital Spending, Cash Flow from Assets, Cash Flow to Creditors, and Cash Flow to Shareholders. (b, 2 points) As covered in Lesson 1 and Assignment 1 and the Mid-term Exam, the Identity tells a story for any given operating period for a firm. Briefly tell the 2018 Cash Flow Identity story for Arcade Fireplaces, Inc. Balance Sheet 2017 2018 Income Stmt. 2018 Current Assets $9,800 $11,070 Sales $29,690 Net Fixed Assets $6,600 $9,200 Various Oper. Exps $12,010 Current Liabilities $7,000 $7,800 Depreciation Exp. $1,400 Long-term Liabilities $5,900 $8,310 Interest Exp. $880 Common Stock $2,500 $3,380 Loss on Sale of Asset* $2,100 Retained Earnings $1,000 $780 Taxable Income $13,300 Tax Expense $4,180 Net Income $9,120 Dividend Exp. $9,340 * remember that a Loss is nothing but a negative Gain

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