uestion #3 Calculate the statement of cash flows based on the information below. Do the statement of cash flows on the following page. 5946 DUO-TONE COMPANY Income Statement for year ended December 31, 2007 $ 297,500 Gain on Sale of Plant Assets $ 302,500 99,460 Total Revenues Cost of Goods Sold Gross Margin Depreciation Expense Operating Expenses Operating Expenses Earnings Before Interest&Taxes Interest Expense Earnings Before Taxes Income Tax Expense Net Income 152,870 2,940 27,270 $ 122,660 5946 DUO-TONE COMPANY Comparative Balance Sheets December 31 007 Cash Marketable Securities Accounts Receivables Notes Receivables Inventories Land Plant Assets Accumulated Depreciation Intangible Assets Total Assets S 97,700 33,400 107,000 37,000 100,000 121,900 102,650 250,000 310,000 205,000 89,500 100,000 250,000 (49,500) (40,000) 150,000 150,000 $ 1,140,400 $ 945,050 2007 2006 62,700 48,280 75,000 Accounts Payable Notes Payable (short-term) Accrued Expenses Payable Wages Payable Income Taxes Payable Bonds Payable, Long-Term Preferred Stock Common Stock ($2 par value) Retained Earnings Total Liabilities & Owner's Equity 75,000 15,100 20,000 60,000 140,000 18,830 20,000 60,000 70,000 345,000 345,000 250,000 200,000 107,940 1,140,400 945,050 172,600 S Additional Information New plant assets costing S141,000 were purchased during the year. Marketable securities were sold at cost. Plant assets costing $36,000 were sold for $15,000, resulting in a gain of $5,000 There is no treasury stock. The stock price is S32 per share. Dividends are $58,000. Earnings per share are S.98/share