After-tax cash flows from operations (Round to the nearest dollar.) Increase in current assets $ (Round to the nearest dollar.) Increase in accounts payable (Round to the nearest dollar.) Increase in gross fixed assets (Round to the nearest dollar.) Free Cash Flows (Round to the nearest dollar.) Financing Cash Flows Interest expense (Round to the nearest dollar.) Increase in short-term interest bearing debt $ (Round to the nearest dollar.) Dividend (Round to the nearest dollar.) Financing Cash Flows $ (Round to the nearest dollar.) ASSETS Cash Accounts receivable Inventory Current assets Plant and equipment Less accumulated depreciation Net plant and equipment Total assets 2007 $200 450 550 $1,200 $2,200 - 1,000 $1,200 $2,400 2008 $155 424 621 $1,200 $2,644 - 1,246 $1,398 $2,598 LIABILITIES AND OWNERS' EQUITY 2007 $200 0 $200 $600 2008 $145 152 $297 $600 Accounts payable Notes payable--current (9%) Current liabilities Bonds Owners' equity Common stock Retained earnings Total owners' equity Total liabilities and owners' equity $900 801 $900 700 $1,600 $2,400 $1,701 $2,598 2007 $1,200 700 $500 2008 $1,443 846 $597 $30 220 $43 246 Sales Cost of goods sold Gross profit Selling, general and administrative expenses Depreciation Operating income Interest expense Net income before taxes Taxes (40%) Net income 250 $250 50 $200 80 $120 289 $308 66 $242 97 $145