Problem 2 Given the following information for the M&G Corporation, prepare a Statement of Cash Flows for 2013 Balance Sheets for December 31, 2012 and 2013 2012 2013 Cash Accounts Receivable Inventories Total Current Assets Land Buildings and Equipment Less: Accumulated Depreciation Total Fixed Assets $ 9,000 12,500 29.000 50.500 20,000 70,000 (28.000) 62.000 $ 500 16,000 49.150 65,650 20,000 100,000 (38,000) 82.000 Total Assets 112.500 147,650 Accrued Expenses Short-term bank notes (8% interest) Total current liabilities Long-term debt Common Stock Retained Earnings 10 500 17.000 27 500 28.750 31 500 24750 16,000 47.000 63.000 22,950 31,500 30.200 Total Liabilities and Equity 112.500 147.650 Income Statements for December 31, 2012 and 2013 Sales (all credit) Cost of goods sold Gross Profit Operating Expenses Depreciation EBIT Interest expense EBT Taxes Net Income 125,000 75.000 50.000 33.500 4,500 12.000 3.000 9,000 4.500 4.500 160,000 96.000 64,000 37,000 10.000 17,000 6.100 10.900 5.450 5.450