You have just been hired as a financial analyst for Barrington Industries. Unfortunately,

company headquarters $($where all of the firm$$s records are kept$)$ has been destroyed by fire. So$,$

your first job will be to recreate the firm$$s cash flow statement for the year just ended. The firm

had $$100,000$ in the bank at the end of the prior year, and its 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\mathrm{.}5$

million of machinery that was needed for a new project. You have just spoken to the firm$$s

accountants and learned that 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. Finally, you have determined that the only financing done by the firm was to issue

long$-$term debt of $$1$ million at a $6\%$ interest rate. What was the firm$$s end of year cash balance?

Recreate the firm$$s cash flow statement to arrive at your answer.