Sales $7000 Less: Cost of goods sold 4000 Gross Profit 3000 Less: Operating expenses Selling expenses 200 General and administrative expenses 400 Lease expenses 100 Depreciation 80 expenses Total operating 780 expenses Operating profits 2220 Less: Interest expenses 200 Net profit before taxes 2020 Less: Taxes (30%) 606 Net profit after taxes 1414 Less: Preferred stock dividends 20 Earnings available for common stockholders 1394 Less: Common stock dividends 894 Retained earnings 500Liabilities and Assets 2013 2012 Stockholders' 2013 2012 Equity Current Current Assets liabilities Cash 980 600 Acct. payable 550 600 Account Receivable 800 1000 Notes 650 600 payable Inventory 500 600 Accruals 0 O Total current 2280 2200 Long-term debt 2500 2000 assets preferred 400 400 stock Common Total gross 8000 7000 stock fixed assets (600,000 1200 1200 shares) Less: Accu. Retained depreciation 4164.8 4084.8 earnings 815.2 315.2 Net fixed Total assets 3835.2 2915.2 Stockholders' 2415.2 1915.2 equity Total Total assets 6115.2 5115.2 liabilities and stockholders' 6115.2 5115.2 equityCF from Operating Activities Net profits after taxes Depreciation for the year decrease in account receivable decrease in inventories increase in accounts payable increase in accruals CF provided by operating activities CF from Investment Activities Decrease in gross fixed assets Changes in equity investment in 0 other firms CF provided from investment activities CF from financing activities Increase in notes payable Increase in long- term debt Changes in stockholders' equity less Total dividend paid CF provided by financing activities Total cash added to reserve