Instructions: Using the Income Statements and Balance Sheets below, calculate the cash flow for this company for years 3. Year 2 has been done for you as an example. Wells' Gift Shop Comparative Income Statement Years Ended December 31 Year 3 Year 2 Year 1 Sales $ es 620,500 $ 517,000 $ 480,000 Cost of Goods Sold $ (387,000) $ (295,000) $ (270,000) Gross Profit $ 233,500 $ 222,000 $ 210,000 Operating Expenses S (150,000) $ (155,000) $ (140,000) Earnings before Interest, Taxes, $ 83,500 $ 67,000 $ 70,000 Depreciation and Amortization (EBITDA) Gain on Sale of Asset Loss on Sale of Asset Depreciation and Amortization Interest Expense Interest Income Income Taxes Net Income $ 3,000 esses es $ (500) $ is (2,000) $ (30,000) $ (30,000) $ (30,000) $ (10,000) $ (10,000) $ (5,000) $ $ $ 500 $ (5,000) $ (10,000) $ (8,000) $ 38,000 $ 20,000 $ 25,500 Notes: Dividends $ 10,000 $ 25,000 $ 10,000 Wells' Gift Shop Comparative Balance Sheet Years Ended December 31 Year 3 Year 2 Year 1 Assets Cash Accounts Receivable SS $ 133,500 $ 87,000 $ 10,000 $ 92,000 $ 90,000 $ 100,000 Inventory 110,000 $ 80,000 $ 70,000 Total Current Assets $+ 335,500 $ 257,000 $ 180,000 Property, Plant and Equipment $ 150,000 $ 170,000 $ 170,000 Accumulated depreciation Net P,P&E Other misc assets Total Assets Ssses S (100,000) $ (70,000) $ (40,000) $ 50,000 $ 100,000 $ 130,000 $ 2,500 $ 3,000 $ 388,000 $ 360,000 $ 310,000 Liabilities and Owner's equity Accounts Payable $ 70,000 $ 80,000 75000 Long-term debt Misc. Accruals SS $ 100,000 $ 100,000 50000 $ $ 0 Common Stock Retained Earnings SS $ 20,000 $ 10,000 $ 10,000 $ 198,000 $ 170,000 $ 175,000 Total Liab+ Equity $ 388,000 $ 360,000 $ 310,000 Wells' Gift Shop Cash Flow Statement For the 12 months ended December 31 Year 3 Year 2 Net Income 20,000 (+) Depr and Amortization 30,000. (-) Gain on Sale of assets $ (3,000) (+) Loss on Sale of assets $ Change in current assets: Accounts receivable $ 10,000 Inventory $ (10,000) Change in Current Liabilities: Accounts Payable $ 5,000 Operating Cash Flow $ 52,000 CF from Investing Activities Sale of long-term assets $ $ Purchase of new assets CF from Investing Activities: CF from Financing Activities (-) Cash dividends (+) Stock issuance (+) Issuance of new debt (-) Repayment of LT debt CF from Financing Activities: Total Cash Flow for the Period Beginning cash Ending Cash Change in Cash Acct Total Cash Flow diff S $ (25,000) $ $ 50,000 $ $ 25,000 $ 77,000 $ 10,000 $ 87,000 ss $ 77,000 $ 77,000 1 S