prepare a cash flos statment

1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Paragraph Styles 2 678910111 12 13 14 15 16 17 18 19 FARAJ CORPORATION Income Statement For the Year Ended December 31, 2008 Sales Cost of goods sold Gross profits Selling and administrative expense Depreciation expense Operating income Interest expense Earnings before taxes $2,200,000 1.300.000 900,000 420,000 150,000 330,000 90.000 240,000 Taxes 80,000 Earnings after taxes 160,000 Preferred stock dividends 10.000 Earnings available to common stockholders 5 150.000 Shares outstanding 120.000 Earnings per share $ 1.25 Statement of Retained Earnings For the Year Ended December 31, 2008 Retained earnings, balance, January 1, 2008 $500,000 Add: Earnings available to common stockholders, 2008 150,000 Deduct Cash dividends declared and paid in 2008 50.000 Retained earnings balance, December 31, 2008 $600.000 Comparatie Balance Sheets For 2007 and 2008 Assets Year End 2007 Year End 2008 Current Cash Accounts receivable et $70,000 300,000 ini $100,000 350.000 LE MAILINGS REVIEW VIEW 4 2.1 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Subtic Paragraph Styles 2 18 19 78 9 10 11 12 13 16 Comparative Balance Sheets For 2007 and 2008 Year End Year End 2007 2008 Current assets Cash $70,000 $100,000 Accounts receivable (net) 300,000 350,000 Inventory 410,000 430,000 Prepaid expenses 50,000 30.000 Total current assets 830,000 910,000 Investments (long-term securities) 80.000 70,000 Plant and equipment 2,000,000 2.400,000 Les Accumulated depreciation 1.000.000 1.150.000 Net plant and equipment 1.000.000 1.250.000 Total antes $1.910.000 $2,200.000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 250,000 $440,000 Notes payable 400,000 400,000 Accrued expenses 70.000 50,000 Total current liabilities 720,000 890,000 Long-term liabilities Boods payable, 2008 70.000 120.000 Total liabilities 790,000 1,010,000 Stockholders' equity Preferred stock, $100 par value 90.000 90,000 Common stock, Si par value 120,000 120,000 Capital paid in excess of a 410,000 410,000 Retained ear 500.000 600.000 Total stockholders' equity 1.120.000 1.220,000 Total liabilities and stockholders' equity S1 I 24 | c 1 Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Paragraph Styles 415161710 11 12 13 14 15 16 17:19 1. Prepare moshers for the Far Cerper (1) FARAS CORPORATION Inne Name For the Year Faded December 31, 2008 Sales Cost of good old Gros pret Selling and motive Deprecatepon Operating income Top En before $2,200,000 1.800.000 So 120.000 150.000 330.000 90.000 140,000 TAR 90.000 Emmetata) 160,000 Preferred stock dividende 10.000 Earnings to monitockholder 3.150.000 Share outstanding 120,000 Eines per share $ 125 Statement of Retained Earning For the Year Ended December 31, 2008 Retained angs, balance, mary 1, 2008 3500.000 Add an able to common stockholders, 2001 150,000 Deduct Cash dividende declared and paid in 2008 50,000 Retained ang balance, December 31, 2008 5600.000 Comparative Balance Sheets Fer 2007 and 2005 Year-End At 2007 Yeu Es 2008 Accountable Prepel espect Totalca alte Panto Lected decision 570,000 $100.000 300.000 350,000 410.000 130.000 2.000 30000 550.000 $10.000 50,000 70.000 2000.000 2.500.000 1.000.000 110.000 MAILINGS REVIEW VIEW 1 Normal 1 No Spac Heading 1 Heading 2 Title Subtitle Subtle Paramph 10 121411 15 10 0.00 Ramnine, hale, Dember 2001 Comparse lance Sheets Fer 2007 and 2008 Yeard Yearted Assets Cath A mecellen) 5.70,000 $100,000 300,000 350.000 410.000 430,000 30.0 830,000 910,000 80.000 70.000 2.000.000 200.000 1.000.000 150.000 1.000.0W IPSO 51010.0W 2730.6 400.000 Prepaid expenses Total love with securit) Plan de Len: Acted depreciate Net plant ind equipment Total Liabilities and Stockholders' Equity Current lite Accounts payable Notes payable Accuerpo Total current sites Long term payable 2008 Totallibilities Stockholders equity Preferred to $100 purvalo Common tock 51 para Capital paid in excess of par Rendamine Total stockholdet Total liabilities and stockholders Bonde $ 250.000 $440,000 100.000 70.00 50.00 73000 890,000 10.00 120.000 790,000 1,010,000 90.000 90.000 120,000 120,000 410.000 410,000 500.000 0.000 1.120.000.000 51.910.00 $2,200.000 BE