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Problem 1 (30pts): Fill in the missing values (in the six empty cells) in the income statement below. XYZ Corporation - Income Statement $000's

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Problem 1 (30pts): Fill in the missing values (in the six empty cells) in the income statement below. XYZ Corporation - Income Statement $000's 2005 2006 2007 Revenue 2500 2750 3000 Allowance for Adjustments & Warranty 25 35 40 Net Revenue 2475 2715 2960 Cost of Goods Sold 1450 1625 Contribution Margin 1025 1090 Sales, General, and Administrative Expenses: All Items except Depreciation 550 575 600 Depreciation 100 100 100 Operating Income 460 Other Income (no writedowns) 20 15 Net Income 385 475 A prospective buyer declined to purchase the company. Using 10 words or less, why do you think that might be? What is the company's net cash flow in 2007?

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