Gardems was recently hired as a financial analyst by Taylor, Inc., which is a Pennsylvania based company. His first task is to conduct a financial statement analysis of firm covering the past 2 years.

Prepare a statement of cash flows for the firm for 2012.

Balance Sheets Cash Accounts receivable Inventory Total current assets 2012 $52,000 402,000 836,000 $1,290,000 2011 57,600 351,200 715,200 $1,124,000 Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets $527,000 166,200 $360,800 $1,650,800 $491,000 146,200 344,800 $1,468,800 Accounts payable Notes payable Accruals Total current liabilities Long-term debt Common stock Retained earnings Total equity Total Claims $175,200 225,000 140,000 $540,200 424,612 460,000 225,988 $685,988 $1,650,800 $145,600 200,000 136,000 $481,600 $323,432 460,000 203,768 $663,768 $1,468,800 INCOME STATEMENTS Sales Cost of goods sold Other expenses Depreciation EBIT Interest expense EBT Taxes (40%) Net income $3,850,000 3,250,000 430,300 20,000 $ 149,700 76,000 $73,700 29,480 $44,220 $3,432,000 2,864,000 340,000 18,900 $209,100 62,500 146,600 58,640 $87,960 OTHER DATA December 31 stock price Number of shares outstanding Dividend per share Annual lease payment Earnings per share $6.00 100,000 $0.22 $40,000 $0.442 $8.50 100,000 $0.22 $40,000 $0.880 Gardems also developed the following industry average data for 2012: Ratio Current Quick Inventory Turnover Days sales outstanding (DSO) Fixed asset turnover Total asset turnover Debt ratio Times Interest Expense Profit margin Basic earning power ROA ROE P/E Industry Average 2.7 1.0 7.0 32.0 days 10.7 2.6 50.0% 2.5 3.5% 19.1% 9.1% 18.2% 14.2