Prepare a statement of cash flows using the $2019$ income statement and the $2018$ and $2019$ balance sheets.

Here$$s a tip: Compare the $2019$ net income to the change in retained earnings from $2018$ to $2019.$ If the change in retained earnings is less than the net profit, they paid dividends to the

owners.

CASTILLO PRODUCTS COMPANY

Income Statement $20182019$

Net Sales $$900,000$ $$1,500,000$

Cost of Goods Sold $540,000900,000$

Gross Profit $360,000600,000$

Marketing $90,000150,000$

General & Administrative $250,000250,000$

Depreciation $40,00040,000$

EBIT $-20,000160,000$

Interest $45,00060,000$

Earnings Before Taxes $-65,000100,000$

Income Taxes $025,000$

Net Income $($Loss$)-$$$65,000$ $$75,000$

Balance Sheet $20182019$

Cash $$50,000$ $$20,000$

Accounts Receivables $200,000280,000$

Inventories $400,000500,000$

Total Current Assets $650,000800,000$

Gross Fixed Assets $450,000540,000$

Accum. Depreciation $-100,000-140,000$

Net Fixed Assets $350,000400,000$

Total Assets $$1,000,000$ $$1,200,000$

Accounts Payable $$130,000$ $$160,000$

Accruals $50,00070,000$

Bank Loan $90,000100,000$

Total Current Liabilities $270,000330,000$

Long$-$Term Debt $300,000400,000$

Common Stock $($$$\mathrm{.}05$ par$)150,000150,000$

Additional Paid$-$in$-$Capital $200,000200,000$

Retained Earnings $80,000120,000$

Total Liab. & Equity $$1,000,000$ $$1,200,000$