The credit manager at First National Bank has just received the income statement and balance sheet for Magna Fax, Inc. for the year ended December $31,2010.($See Table $4\mathrm{.}2)$ The bank requires the firm to report its earnings performance and financial position quarterly as a condition of a loan agreement. The bank's credit manager must prepare two key financial statements based on the information sent by Magna Fax, Inc. This will be passed on to the commercial loan officer assigned to this account, so that he may review the financial condition of the firm.

$($a$)$ Prepare a Statement of Retained Earnings for the year ended December $31,2010.$

$($b$)$ Prepare a summary of cash inflows and cash outflows $($Debe hacer la tabla que hicimos en la discusi$$n de la clase sobre este tema$)$ for the year ended December $31,2010.$

$($c$)$ Prepare a Statement of Cash Flows for the year ended December $31,2010,$ organized by cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities.