Part II The following Income Statements and Balance Sheets are for Smolira, Inc. from 2008 to 2010. Income Statements 2008 2009 2010 Sales 388,000 392,000 386,000 Less Cost of goods sold i Less Depreciation 350,000 352,000 348,000 10.000 10.000 9.000 Earnings before interest and taxes (EBIT) 28,000 Less Interest expense Earnings before taxes 100 27,900 30,000 100 29,900 29,000 100 28.900 Less Taxes (40% rate) Net income Dividends Retained earnings 11.200 12.000 11.600 16,700 17,900 17,300 3,000 3,000 2,700 13,700 14,900 14,600 Balance Sheets 2008 2009 2010 ASSETS Cash Accounts receivable Inventories Total c Net fixed assets Total assets 15.60 10,850 5,030 134,660 184,240 239,890 153.150 140.760 143.400 303,430 335,850 388,320 15.010 20.410 26.590 318,440 356,260 414,9101 Accounts payable Total current liabilities Long-term debt Total abilities Common stock Retained earnings 2008 2009 2010 LIABILITIES & OWNER'S EQUITY 62,820 68,570 93,750 Notes payable 4.140 6.210 9.680 66,960 74,780 103,430 5,000 6,000 10,000 71,960 80,780 113,430 50,000 50,000 50,000 196,480 225480 251.480 Total owner's equity 246,480 275,480 301,480 Total liabilities and owner's equity 318,440 356,260 414,910 Construct the cash flow from operating section of the statement of cash flows for 2002 (Q11-Q17) (Hint: determine the magnitude, then the sign)