Exhibit 1 North Mountain Nursery, Inc.: Statement of Cash Flow Income Statement for the Year Ended December 31, 2006 $2,181,250 1.110,600 1,070,650 Revenues Cost of merchandise sold Gross margin Operating expenses: Rent expense Utilities expense Phone expense Salary and wage expense Depreciation expense Marketing expense Total operating expense Operating income Interest expense Income before taxes Income tax expense Net income Source: All exhibits created by authors 120,600 60,350 6,100 650,000 20,000 41.000 898,050 172,600 9.000 163,600 57,300 $ 106,300 Exhibit 2 North Mountain Nursery, Inc.: Statement of Cash Flow Balance Sheet for the Years Ended December 31, 2005, and December 31, 2006 December 31, 2005 December 31, 2006 $ 47,950 655,000 234.700 937,650 160,000 $1.007.650 $ 45,600 700,000 250,000 995,600 190,000 91.185.600 Current assets: Cash Accounts receivable Inventory Total current assets Equipment Total assets Current liabilities: Accounts payable Utilities payable Salary and wages payable Income tax payable Total current liabilities Noncurrent liabilities: Loan payable Total liabilities Owners' equity: Capital stock Retained carnings Total liabilities and owners' equity 510,000 19,000 9,750 7.100 545,850 530,000 18,250 10,000 2.250 565,500 red for use only by Mahnoor Khan in Finance at University of Guelph Humber from Jan 11, 2021 to Apr 29, 2021 Use outside these parameters is a copyright violation 172.000 717,850 154.000 719,500 240,000 139,800 $1.097,650 240,000 226.100 $1.185.600 Finance (BADM*3000*05] North Mountain Nursery Inc.: Case Study Assignment Statement of Cash Flow Income Statement Items Income Statement Amount Revenue $2,181,250 Adjustment to Operations Cash Operations Cash get to operations Flow Amount Flow Name cash flow from the balance sheet Increase in $2,185,750 Cash receipts Accounts from customers Receivables 45,000 () Increase in Cash Payments Inventories to Suppliers $1,110,600 Cost of Merchandise Sold (+) Increase Accounts Payable $ Gross Margin Operating Expenses