CASH FLOW PROBLEM a) In 2002 Parker Corporation paid $10 in preferred share dividends and $70 in common share dividends. It had sales equal to $1,700, operating profit equal to $370, and interest expense equal to $20. Using this information and Parker Corporation Balance Sheet, please calculate the amount of net profit for 2002 b) Prepare the cash flow statement using the information below. PARKER CORPORATION BALANCE SHEET 2001 2002 ASSETS: Current Assets: Cash Marketable Securities Accounts Receivable Inventories Total Current Assets: 300 200 500 900 1,900 400 600 400 600 2,000 Gross Fixed Assets Land and buildings Machinery and equipment Furniture and fixtures Vehicles Other assets Less: Accumulated Depreciation Total Net Fixed Assets TOTAL ASSETS 1,050 800 220 80 50 1,200 1.000 1,200 850 300 100 SO 1,300 1,200 2,900 3,200 2001 2002 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts Payable Loan Accrued Expenses Total Current Liabilities Long-term debt Total Liabilities 500 700 200 1,400 400 1,800 700 600 100 1.400 540 1,940 Shareholders' Equity: Preferred Shares Common stock Retained Earnings Total Shareholders' Equity 100 500 500 1,100 100 560 600 1,260 2,900 3,200 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY