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South Bridge Industries 2021 Cash Flow Statement (indirect method) Beginning cash $40,500 Net profit $8,532 Add depreciation $3,250 Accts receivable (increase)/Decrease ($19,000) Inventory (increase)/Decrease ($57,500)

South Bridge Industries 2021 Cash Flow Statement (indirect method) Beginning cash $40,500 Net profit $8,532 Add depreciation $3,250 Accts receivable (increase)/Decrease ($19,000) Inventory (increase)/Decrease ($57,500) Accounts payable increase/(decrease) 37,080 Total Operating Cash flow $(27,638) Plant, Property, and Equipment ($18,000) Total Asset activity cash flow ($18,000) Financing activity cash flow Owners' investment $10,000 Bank Loan Payable $20,000 Total Financing activity cash flow $30,000 Ending Cash $24,862 6. Complete a margin analysis for South Bridge Industries and answer the questions below. (3pts) South Bridge Industries Year Ending Year Ending Change 2020 2021 Gross Margin 43.7% Operating Margin 3.9% Net Margin 3.0%

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