Following is comparative balance sheets for Smith Corporation. An income statement appears as well.

Balance Sheet

End of 2007 2008

Cash 30,000 143,000

A/R 40,000 20,000

Inventory 80,000 90,000

Fixed Assets 400,000 500,000

Less Accumulated Depr. 200,000 250,000

Net Fixed Assets 200,000 250,000

Total Assets 350,000 503,000

Accounts Payable 20,000 45,000

Bonds Payable 100,000 200,000

Common Stock 50,000 50,000

Capital paid in excess of Par 50,000 50,000

Retained Earnings 130,000 158,000

Total Liabilities and

Stockholder's Equity 350,000 503,000

Income Statement

SALES $600,000

LESS COGS 300,000

GROSS PROFIT 300,000

LESS OPERATING EXPENSES 100,000

LESS DEPRECIATION EXPENSE 50,000

EBIT 150,000

LESS INTEREST EXPENSE 20,000

EBT 130,000

LESS TAXES 52,000

EAT $78,000

ADDITIONAL INFORMATION: Dividends paid totaled $50,000.

Statement of Cash Flows

Operating Activities:

NI

________________ _______________

Net Operating Cash Flows ___________________

Investing Activities:

________________ ________________

Net Investing Cash Flows __________________ Financing Activities:

Dividends

Net Financing Cash Flows _________

Net Cash Flows ===================