Please show all work. 1. Statement of Cash Flows and Standardized Financial Statements a) Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. Identify the sources and uses of cash What was the total cash flow from operations for the period? Operating activities = Net Income + Depreciation + Source (inflow) - Use foutflow) b) i) Prepare the 2018 common-size Income Statement given: U.S. CORPORATION 2018 Income Statement ($ in millions) Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net Income $1,509 750 65 $ 694 70 $ 624 131 $ 493 Dividends Addition to retained earnings $123 370 Income Statement Common-size Sales Cost of Goods Sold Depreciation EBIT Taxable income Interest Taxes Net Income b) ii) Prepare the 2018 (base year-2017) common-base year Balance Sheet given: Assets 2017 2018 US CORPORATION 2017 and 2018 Balance Sheets in millions Liabilities and Owners Equity 2018 2017 Current liabilities $ 221 Accounts payable $ 232 688 Notes payable 196 555 Total $ 428 $1,464 Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment $ 104 455 553 $1,112 $ 206 123 $ 389 Long term debt $ 408 $ 454 $1.644 $1.709 Owners' equilty Common stock and pald-in surplus Retained earnings Total Total liabilities and owners' equity 600 1.320 $1.920 6-40 1,690 $2,330 Total assets $2.756 $3,173 $2.756 $3,173 Assets Liabilities and Equity Common-Base Year Common-Base Year Cash A/R Inventory Net Fixed Assets A/P Notes Payable Long term debt Common Stock Total Assets Ret Earnings Total Liabilities and Equity