Annette's

Condensed Income Statement and Statement of Retained Earnings

For the Period: January $1$ through December $31,20$X$2$

SALES $$5,200,000$

Cost of Sales $1,560,000$

Labor $1,456,000$

PRIME COSTS $3,016,000$

Other Operating Expenses $($excluding depreciation$)1,404,000$

Depreciation $105,000$

OPERATING INCOME $675,000$

Interest $242,000$

INCOME BEFORE INCOME TAXES $433,000$

Income Taxes $173,000$

NET INCOME $260,000$

STATEMENT OF RETAINED EARNINGS

Retained Earnings, December $31,$ Last Year $1,146,000$

Net Income for This Year $260,000$

Subtotal $1,406,000$

Cash Dividends Paid This Year $156,000$

Retained Earnings, December $31,$ This Year $1,250,000$

Annette's

Statement of Cash Flows

December $31,20$X$2($This Year$)$

NET CASH FLOW FROM OPERATING ACTIVITIES

Net Income

Adjustments to reconcile net income to net cash flows from operating activites

Depreciation

Increase in Net Receivables

Decrease in Inventories

Decrease in Accounts Payable

Decrease in Other Current Liabilities

Net Cash Flow from Operating Activities

NET CASH FLOW FROM INVESTING ACTIVITIES

Decrease in Marketable Securities

Increase in Property and Equipment

Net Cash Flow from Investing Activities

NET CASH FLOW FROM FINANCING ACTIVITIES

Decrease in Notes Payable

Increase in Long$-$Term Debt

Increase in Capital Stock $($Common Stock $+$ Paid in Capital$)$

Dividends Paid

Net Cash Flow from Financing Activities

Net Increase in Cash This Year

Cash at the beginning of This Year

Cash at the end of This Year

SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION

Cash paid during the year for

Interest

Income Taxes