"Action Items - 1.Read the closing case for chapter 2, Cash Flow at East Coast Yachts, on pages 43-44 in Corporate Finance. 2.Complete the Cash Flow worksheet. I am attaching the cash flow worksheet and case information. Thank you for your help!"

\fWorksheet Assignment 1-2: Cash Flows at East Coast Yachts 1. Read the closing case Cash Flows at East Coast Yachts on pp. 43-44 of your textbook. 2. Based on the information provided, prepare an accounting statement of cash flows and a financial statement of cash flows using the following tables: East Coast Yachts Statement of Cash Flows ('000 Omitted) 2008 Operations Net income Depreciation Deferred taxes Changes in assets and liabilities Accounts receivable Inventories Accounts payable Accrued expenses Other Total cash flow from operations Investing Activities Acquisition of fixed assets Sales of fixed assets Total cash flow from investing activities Financing activities Retirement of long-term debt Proceeds from long-term debt sales Change in notes payable Dividends Repurchase of stock Proceeds from new stock issue Total cash flow from financing activities Change in Cash (on the balance sheet) East Coast Yachts Financial Cash Flows ('000 Omitted) 2008 Cash flow from assets Operating cash flow - Net capital spending - Change in net working capital Total cash flow from assets Cash flow to creditors Interest paid - Net new borrowing Total cash flow to creditors Cash flow to stockholders Dividends paid - Net new equity raised Total cash flow to stockholders 3. Use the space below to answer the three questions posed in the case. Question 1: How would you describe East Coast Yachts' cash flows? Question 2: Which cash flow statement more accurately describes the cash flows at the company? Question 3: In light of your previous answers, comment on the firm's expansion plans