You asked: "PROBLEM # 2 Condensed financial data of Fulton Corp. for 2008 and 2007 are presented below. FULTON CORP. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2008 AND 2007 2008 2007 Cash $800 $600 Investments 0 200 Receivables 2,250 2,100 Inventory 1,600 1,200 Plant assets 1,600 1,200 Accumulated depreciation (600) (455) $5,650 $4,845 Accounts payable $750 $1,200 Accrued liabilities 330 520 Bonds payable 800 1,000 Capital stock 1,500 1,400 Retained earnings 2,270 725 $5,650 $4,845 FULTON COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2008 Sales $15,200 Cost of goods sold 10,400 Gross profit 4,800 Selling and administrative expenses 1,205 Income from operations 3,595 Other revenues and gains Loss on sale of investments _ 50 Income before income tax 3,545 Income tax expense 1,400 Net income 2,145 Cash dividends 600 Income retained in business $1,545 Additional information: During the year, $100 of common stock was issued in exchange for land. No plant assets were sold in 2008. Instructions Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)