The following statements represent the income statement and balance sheet for the first and second years of Jen and Joe's Lawn care business. Based on these statements construct a cash flow statement for the first and second year of the business. Jen and Joe Income Statement First Year Second Year Revenues $ 212,000.00 $ 311,000.00 Cogs $ 23,200.00 $ 35,000.00 Gross Income $ 188,800.00 $ 276,000.00 Hint: Since year 1 is the first year of the business the amount represented in the balance sheet in year 1 represents the change. For example, Accounts Receivable are listed at $2200.00. Since this is the first year of the business (Year 1), last year (year 0) there were no accounts receivable, so the change is $2200 (Year 1 Accounts Receivable) - 0 (Year 0 Accounts Receivable). For the Second Year Accounts receivable was $3,120, so the increase was $3120-$2200-$920. Operating Expenses Payroll Cost Rent Fuel and Maintenance Phone and Internet Advertising Business Insurance Total Operating Expenses $ $ $ $ $ $ $ 42,845.00 $ 58,000.00 12,000.00 $ 12,000.00 16,200.00 $ 21,020.00 1,440.00 $ 1,440.00 8,000.00 $ 10,000.00 5,500.00 $ 5,500.00 85,985.00 $ 107,960.00 EBITDA Depreciation $ 102,815.00 $ $ 13,600.00 $ 168,040.00 17,200.00 EBIT Interest $ $ $ 89,215.00 $ 3,500.00 $ 85,715.00 $ 150,840.00 3,200.00 147,640.00 EBT Taxes Self Employment Tax Federal Income Tax State Income Tax Total Taxes $ $ $ $ 13,084.00 $ 8,048.00 $ 3,092.00 $ 24,224.00 $ 22,543.00 12,520.00 4,985.00 40,048.00 Net Income After Tax Distribution to Owner Retained Earnings $ $ $ 61,491.00 $ 107,592.00 52,330.00 $ 89,300.00 9,161.00 $ 18,292.00 Jen and Joe Balance Sheet First Year Second Year Cash Accounts Receivable Inventory Total Current Assets $ $ $ $ 9,289.00 $ 2,200.00 $ 6,500.00 $ 17,989.00 $ 20,141.00 3,120.00 7,840.00 31,101.00 Gross Fixed Assets $ Less Accumulated Depreciation $ Net Fixed Assets $ 68,000.00 $ 13,600.00 $ 54,400.00 $ 88,000.00 30,800.00 57,200.00 Total Assets $ 72,389.00 $ 88,301.00 Liabilities and Equity Accounts Payable Accrued Taxes Total Current Liabilities $ $ $ 3,280.00 $ 5,200.00 $ 8,480.00 $ 4,870.00 7,230.00 12,100.00 Long term debt $ 45,000.00 $ 39,000.00 Owners Investment Retained Earnings $ $ 9,748.00 $ 9,161.00 $ 9,748.00 27,453.00 Total Liabilities and Equity $ 72,389.00 $ 88,301.00