BBCC Income Statement for 2018 and 2019 (thousand dollars)

	2018	2019
Sales	$40,909	$45,000
Cost of Goods Sold	$20,909	$23,000
Gross Profit	$20,000	$22,000
Selling and Administrative Expenses	$11,818	$13,000
Depreciation Expense	$2,000	$3,000
Operating Income (EBIT)	$6,182	$6,000
Interest Expense	$400	$412
Earnings before Taxes (EBT)	$5,782	$5,588
Income Taxes (@ 40%)	$2,313	$2,235
Net Income (NI)	$3,469	$3,353
Dividends Paid (@ 21.86%)	$758	$733

BBCC Balance Sheet as of End of 2018 and 2019 (thousand dollars)

	2018	2019
Assets:
Cash	$2,000	$1,800
Accounts Receivable (net)	$6,000	$7,600
Inventory	$5,000	$5,220
Plant and Equipment (gross)	$26,000	$31,000
Less: Accumulated Depreciation	$10,000	$13,000
Plant and Equipment (net)	$16,000	$18,000
Land	$1,000	$1,000
Liabilities:
Accounts Payable	$2,000	$2,600
Notes Payable	$3,000	$3,300
Accrued Expenses	$3,000	$3,100
Bonds Payable	$4,000	$4,000
Stockholders Equity:
Common Stock	$4,000	$4,000
Retained Earnings	$14,000	$16,620

3. Determine the sources and uses of funds and prepare a statement of cash flows for 2019.

4. Discuss the financial strengths and weaknesses of BBCC based on the financial condition as evident from the ratio analysis and the cash flow statement.