P10.6 With the balance sheet information from P10.5, and the additional infor- mation from the income statement and statement of retained earnings, pre- pare the motel's statement of changes to working capital for the year end- ing December 31, 0008. Income Statement for Year Ended December 31, 0007 Sales revenue Operating costs Income before depreciation and interest and tax Depreciation, building Depreciation, furniture and equipment Income before interest and tax Interest Operating income (before tax) Income tax Net income $204,900 173,800 31,100 ( 8,300) (3,700) $ 19,100 10,800) $ 8,300 1,500) $ 6,800 Statement of Retained Earnings For Year Ended December 31, 0007 Retained earnings, January 1, 0007 Add: Net income for year Subtotal Deduct: Dividends paid Retained earnings, December 31, 0007 $ 22,800 6,800 $ 29,600 ( 3,200) $ 26,400 P10.6 With the balance sheet information from P10.5, and the additional infor- mation from the income statement and statement of retained earnings, pre- pare the motel's statement of changes to working capital for the year end- ing December 31, 0008. Income Statement for Year Ended December 31, 0007 Sales revenue Operating costs Income before depreciation and interest and tax Depreciation, building Depreciation, furniture and equipment Income before interest and tax Interest Operating income (before tax) Income tax Net income $204,900 173,800 31,100 ( 8,300) (3,700) $ 19,100 10,800) $ 8,300 1,500) $ 6,800 Statement of Retained Earnings For Year Ended December 31, 0007 Retained earnings, January 1, 0007 Add: Net income for year Subtotal Deduct: Dividends paid Retained earnings, December 31, 0007 $ 22,800 6,800 $ 29,600 ( 3,200) $ 26,400