Create two statements of cash flows using the actual and forecast financial statements for 1978.

BILDRITE, INC. During the second week of January, 1979, the president of Bildrite, Inc 1978 operating results and year-end balance sheet with 1 vans, auditor. Mr. Evans knew that Bildrite had enjoyed a particularl profits, and he was hopeful the company's bank of account, successful year both for sales and Trust, would be pleased as Such a reaction was of some importance at the moment, since in early 1978 Bildnite had for first time in its history arranged a term loan whose initial repayment installment of $40,000 was due on the upcomin 1. Mr. Evans felt that the company's stron 1978 would impress Stan Walters, the loan officer at the bank, and he had no doubt that the was well within Bildrite's financial capacity, coming off its best year ever. He planned to send Mr. Walters the firm's audited statements within several days, in order baching loan payment that he could examine them even before the due data of the loan. Bildrite, Inc., was organized in 1970 as a wholesaler of electrical supplies and equipment Wisconsin. Its sales to 1970's, and it currently served a region encompassing not surrounding area. The firm had needed by contractors, many of whom were not inventory themselves. Mr. Evans considered Bildrite's competitive advantage to con around only Madison proper but the earned a reputation for fast delivery on a wide range of items and could not carry an extensive depend beavily on this reputation, which necessitated fairly substantial stocks of parts and supplies and had caused the firm to require reated warehouse space in growing volume over time. on Bildrite's facilities as its sales expanded. In 19 permit the maintenance of a larger inventory as well as provide space for the late 1970's had placed severe pressure 77, the company experienced revenues in excess of a million and a half dollars, its largest to date. During the latter part of that year, a decision was and existing storerooms which would a retail sales effort. The new building would eliminate the need to rent commercial warehouse space-an arrangement which e and inconvenient. The firm's sales to contractors were all made on The building boom in central Wisconsin d had become both credit terms of net When the financial statements for the year 1977 were completed, Mr, Evans visited the Lincoln Trust and Savings Bank, with whom Bildrite hacd however, had the expansi Exhibits) since its g cash account balances ranging from $20,000 to $60,000 at various times. Never before, company sought a loan either for seasonal or longer-term capital requirements. Mr. Evans discussed with Mr. Walters the possibilities for bank support of Bildrite's facilities ion program. He presented the 1977 statements, together with a forecast for 1978 which included the anticipated expenditures on construction, and savings on warehouse rental fees (see Based on these statements, on his conversations with Mr. Evans, and on his general knowledge of the building and building-supply business, Mr. Walters agreed to lend $120,000 to new facilities and the normal seasonal increase in sales that occurred during the spring and summer of each year. The loan was set up on a three-year term basis, with repayments of $40,000 due on February 1 of 1979, 1980, and 1981. An interest rate of 12 percent per annum was specified, these charges being payable semiannually. Bildrite's ordinary operating cash balances were, on average, sufficient to meet Lincoln Trust's compensating-balance desires help finance the without additional requirements Officials of Bildrite stopped in to see Mr. Walters throughout 1978 to report the company's progress and keep him informed of over-all developments. The warehouse as completed in May of that year, at which time Mr. Walters participated in the "grand opening