- Prepare the Statement of Cash Flows and Selected Ratios The balance sheet for December 31, 2002, and December 31, 2001, and the Company follow: Assets: income statement for the year ended December 31, 2002, of Growth 2002 2001 Cash Accounts receivable, net Inventory Land Building and equipment Accumulated depreciation $ 40, 000 $ 30,000 75, 000 95,000 80,000 100,000 70,000 90,000 80,000 120,000o (80,000) 70,000) Total assets $310.000 Liabilities and Stockholders' Equity: $ 35,000 6,000 7,000 40,000 120,000 112, 000 S 40,000 4,000 6,000 60,000 110,000 90,000 Accounts payable Income taxes payable Wages payable Current notes payable Common stock Retained earnings Total liabilities and $320,000 stockholders' Equity $310,000 Growth Company Income Statement For the Year Ended December 31, 2002 Sales Less expenses: $650,000 Cost of goods sold Selling and administrative expenses (460,000) (includes depreciation of $10,000) (120,000) Interest expense Income before income taxes Income tax expense Net income 64,000 S 39, 000 Note: Cash dividends of $17,000 were paid during 2002. Required a. Prepare the statement of cash flows for 2002. (Present cash flows from operations using the indirect approach.) Compute the ratio cash flow/current maturities of long- term debt and current notes payable b. 230