Prepare a statement of cash flows for the Armor Company.

Armor Company Income Statement Year Ended December 31, 20XX
Sales	$5,000,000
Cost of goods sold	3,150,000
Gross profits	1,850,000
Selling and administrative expense	660,000
Amortization expense	320,000
Operating income	870,000
Interest expense	55,000
Earnings before taxes	815,000
Taxes	420,000
Earnings after taxes	395,000
Preferred stock dividends	20,000
Earnings available to common shareholders	$375,000
Shares outstanding	187,500
Earnings per share	$2.00

Statement of Retained Earnings Year Ended December 31, 20XX
Retained earnings, balance, January 1, 20XX	$880,000
Add: Earnings available to common shareholders, 20XX	375,000
Deduct: Cash dividends declared and paid in 20XX	200,000
Retained earnings, balance, December 31, 20XX	$1,055,000

Comparative Balance Sheets 20XX and 20XW
	December 31, 20XX			December 31, 20XW
Assets
Current assets:
Cash		$120,000			$108,000
Accounts receivable (net)		470,000			458,000
Inventory		600,000			572,000
Prepaid expenses		19,000			38,000
Total current assets		1,209,000			1,176,000
Investments (long-term securities)		100,000			105,000
Plant and equipment	2,400,000			1,800,000
Less: Accumulated depreciation	1,080,000			760,000
Net plant and equipment		1,320,000			1,040,000
Total assets		$2,629,000			$2,321,000
Liabilities and Sh. Eq
Current liabilities:
Accounts payable		$238,000			$157,000
Notes payable		500,000			500,000
Accrued expenses		46,000			64,000
Total current liabilities		784,000			721,000
Long-term liabilities:
Bonds payable, 20XY		170,000			100,000
Total liabilities		954,000			821,000
Sh.eq:
Preferred stock		120,000			120,000
Common stock		500,000			500,000
Retained earnings		1,055,000			880,000
Total sh.eq		1,675,000			1,500,000
Total liabilities and sh.eq		$2,629,000			$2,321,000