Prepare statement of cashflow for year 9 using direct method.

Income statement for the year ended December 31, year 9 (shs. 000) Sales Cost of goods sold Depreciation expense Sales and general expenses Interest expense Income tax expense Net income 1000 (650) (100) (100) (50) (40) 60 Assets Year 8 Year 9 Cash Accounts receivables, net Inventory Current assets Fixed assets, net Total assets 50 500 750 1,300 500 60 520 770 1,350 550 Liabilities and equity Notes payable to banks Accounts payable Interest payable Current liabilities Long-term debt Deferred income tax 100 590 10 700 300 300 400 100 1800 75 615 20 710 350 310 400 130 1900 Capital stock Retained earnings Total liabilities and equity