1. Prepare a statement of cash flows for the current year for Dog Concierges using the balance sheet and income statement in Exhibits 2 and 3. You should explain how the key information in the statement of cash flows is derived in the text (Hint: some of the missing items can be derived using the linkage among the financial statements).

Exhibit 2 DOG CONCIERGES, LLC: TRANSACTION ANALYSIS AND STATEMENT OF CASH FLOWS PREPARATION Balance Sheets as of December 31 (in thousands) Income Statement (for this year ended December 31 , in thousands) Source: Created by case writer