Question 2 (30 marks)

	2019	2020	2021
INCOME STATEMENT	in ('000)	in ('000)	in ('000)
Revenue	102,007	118,086	131,345
cost of goods sold	39,023	48,004	49,123
Gross Profit	?	?	?
Salaries and benefit	26,427	22,658	23,872
Depreciation and Amortization	19,500	18,150	17,205
Rent and overhead	10,963	10,125	10,087
Interest expenses	2,500	2,500	2,500
total expenses	59,390	53,433	53,664
Earning Before Tax	?	?	?
Taxes	1,120	4,858	8,483
Net earning	?	?	?
BALANCE SHEET
Assets
Cash	167,971	181,210	183,715
Account Receivable	5,100	5,904	6,567
Inventory	7,805	9,601	9,825
net Plant property and equipment	45,500	42,350	40,145
Total asset	226,376	239,065	240,252
Liabilities
account payable	3,902	4,800	4,912
long term debt	50,000	50,000	30,000
total debt	53,902	54,800	54,912
equity capital	170,000	170,000	170,000
Retained earning (assume no dividend paid)	?	?	?
Shareholders' equity	?	?	?
Liability + Equipment	?	?	?
CASH FLOW STATEMENT
Operating cash flow (Indirect method)
XXXX (?)	?	?	?
Add XXXX	?	?	?
change in net working capital (+, -)	9003	?	?
cash flow from operation	?	?	?
Investing cash flow
Investment in Property and equipment	15000	15000	15000
Cash flow from investing activities
Financing Cashflow
Issuance (repayment) of debt	0	0	-20000
issuance of equity	170000	0	0
cash flow from financing	?	?	?
net increase in cash flow for the year end	?	?	?
opening cash flow	0	167,971	181,210
closing cash balance for the end of the year	?	?	?

1. Calculate (fill up) earnings before taxes, Net earnings, Total Liability and Equity .
2. Using indirect method of cash flow calculation, determine (fill-up) the cash flow from operating activities, cash flow from financing activities, cash flow investing activities and ending cash balance for the financial year. (all the question mark).

As the user of financial information why do you think it is important to understand interlinkage among cash flows statement, income statement and balance sheet? How would an increase in depreciation of $100, impact these three statements?