You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters has been destroyed by fire. So, your job will be to recreate the firms cash flow statement for the year just ended. The firm had $ 100,000 in the bank at the end of the prior year, and it's working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.5 million of machinery that was needed for a new project. The annual depreciation expense for the year is $450,000; however the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. The only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate.

1) What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer.