Prepare a statement of cash flows for Abrahams Manufacturing Company for the year ended January 31, 2018. Interpret your results.

Abrahams Manufacturing Company Balance Sheet for Jan. 31, 2017 and Jan. 31, 2018

	2017	2018
Cash	$89,000	$100,000
Accounts receivable	64,000	70,000
Inventory	112,000	100,000
Prepaid expenses	10,000	10,000
Total current assets	275,000	280,000
Gross plant and equipment	238,000	311,000
Accumulated depreciation	(40,000)	(66,000)
Total assets	$473,000	$525,000
Accounts payable	$85,000	$90,000
Accrued liabilities	68,000	63,000
Total current debt	153,000	153,000
Mortgage payable	70,000	0
Preferred stock	0	120,000
Common stock	205,000	205,000
Retained earnings	45,000	47,000
Total debt and equity	$473,000	$525,000

Abrahams Manufacturing Company Income Statement for the Year Ended Dec. 31, 2018

	2018
Sales	$184,000
Cost of goods sold	60,000
Gross profit	$124,000
Selling, general, and administrative expenses	44,000
Depreciation expense	26,000
Operating income	$54,000
Interest expense	4,000
Earnings before taxes	$50,000
Taxes	16,000
Preferred stock dividends	10,000
Earnings available to common shareholders	$24,000

Additional Information

1. The only entry in the accumulated depreciation account is for 2018 depreciation.

2. The firm paid $22,000 in common stock dividends during 2018.

Please try and show your work so I can learn from this problem :(