1. Latigoe Inc. has the following financial statements for 20X8. In addition, the company paid stockholders dividends of $2.9 million and received $4.8 million from the sale of new stock. No fixed assets were retired during the year. (Hint: That implies that fixed asset purchases and depreciation are equal to the changes in the gross fixed asset and accumulated depreciation accounts.)

   Latigoe Inc.
   Balance Sheet
   For the period ended 12/31/X8 ($000)
   				ASSETS
   		12/31/X7			12/31/X8
   Cash		$	3270		$	2620
   Accounts receivable			7916			5637
   Inventory			12408			13653
   CURRENT ASSETS		$	23594		$	21910
   Fixed assets
   Gross		$	66098		$	72166
   Accumulated deprec.			(47038)			(51304)
   Net		$	19060		$	20862
   TOTAL ASSETS		$	42654		$	42772
   				LIABILITIES
   Accounts payable		$	1677		$	2212
   Accruals			990			799
   CURRENT LIABILITIES		$	2667		$	3011
   Long-term debt		$	9007		$	1352
   Equity			30980			38409
   TOTAL CAPITAL		$	39987		$	39761
   TOTAL LIABLITIES AND EQUITY		$	42654		$	42772

   Latigoe Inc.
   Income Statement
   For the period ended 12/31/X8
   ($000)
   Sales		$	67883
   COGS			35498
   Gross margin		$	32385
   Depreciation			4266
   Expense		$	17787
   EBIT		$	10332
   Interest			1096
   EBT		$	9236
   Tax			3707
   Net income		$	5529

   Construct Latigoe's statement of cash flows for 20X8. Enter your answers in thousands. For example, an answer of $1.2 million should be entered as 1200, not 1200000. Use a minus sign, to indicate any decreases in cash or cash outflows.

   Latigoe Inc. Statement of Cash Flows For the period ended 12/31/X8 ($000)
   OPERATING ACTIVITIES:
   	Net Income	$ fill in the blank 1
   	Depreciation	$ fill in the blank 2
   	Net changes in current accounts	$ fill in the blank 3
   Cash from Operating Activities		$ fill in the blank 4
   INVESTING ACTIVITIES:
   	Increase in Fixed Assets	$ fill in the blank 5
   Cash from Investing Activities		$ fill in the blank 6
   FINANCING ACTIVITIES:
   	Decrease in Debt	$ fill in the blank 7
   	Dividends Paid	$ fill in the blank 8
   	Sale of Stock	$ fill in the blank 9
   Cash from Financing Activities		$ fill in the blank 10
   NET CASH FLOW		$ fill in the blank 11

   Reconciliation
   	Beginning Cash	$ fill in the blank 12
   	Net Cash Flow	$ fill in the blank 13
   	Ending Cash	$ fill in the blank 14

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   Partially correct