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PROBLEM I(Chapter 4) Please prepare a cash flow statement for the year 2003 using the income statement and balance below: Income Statement for 2002 and

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PROBLEM I(Chapter 4) Please prepare a cash flow statement for the year 2003 using the income statement and balance below: Income Statement for 2002 and 2003 2002 2003 40,909 20,909 20,000 11,818 2,000 6,182 Sales Cost of Goods Sold Gross Profit Selling and administrative expenses Depreciation Operating Income (EBIT Interest expense Earnings Before Tax (EBT) Income Taxes (40%) Net Income (ND) Preferred stock dividends Earnings available to common shareholders Common dividends paid (@21.86% 400 45,000 23,000 22,000 13.000 3.000 6,000 412 5,588 2,235 3,353 0 3,353 733 5,782 2,313 3,469 0 3,469 758 Balance Sheet as the end of 2002 and 2003 2002 2003 2,000 6,000 5,000 26,000 10,000 16,000 1,000 1.800 7,600 5.220 31,000 13,000 18,000 1.000 Assets Cash Accounts Receivable (net) Inventory Plant and Equipment (gross) Less: Accumulated Depreciation Plant and Equipment (net) Land Liabilities Accounts Payable Notes Payable Accrued Expenses Bonds Payable Stockholders' Equity Common Stock Retained Earnings 2,000 3,000 3,000 4,000 2,600 3,300 3,100 4,000 4.000 14,000 4,000 16,620

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