The tables here show Dynamic Mattress's year-end 20l0 balance sheet and its income statement for 2011. Use these tables (and Table 20.3) to work out a statement of sources and uses of cash and the statement of cash flow for 2011. Use Table 20.5 and the solution to Check Point 20.4 as guides.

Income Statement for 2011 ($ millions)
Sales.......................................300
Operating costs........................- 285
EBITOA...................................15
Depreciation..............................- 2
EBIT........................................13
Interest.....................................-1
Pretax income.............................12
Tax at 50%...............................- 6
Net income.................................6

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Cash flows from operating activities: Net income $12.0 Depreciation 4.0 -5.0 AIQRAJARAI SJUNODAR H! (ASRALAHI) ASRAJAg Decrease (increase) in inventories 1.0 Increase (decrease) in accounts payable 7.0 Net cash flow from operating activities Cash flows from investing activities: $19.0 Investment in fixed assets -$14.0 Cash flows from financing activities: Dividends -$1.0 Sale (purchase) of marketable securities -5.0 Increase (decrease) in long-term debt 7.0 Increase (decrease) in bank loans -5.0 Net cash flow from financing activities -$4.0 Incrcaac in coah balance $1.0 Year-End Balance Sheet for 2010 (S millions) Assets Liabilities Current assets: Current liabilities: Cash Bank loans Marketable securities Trade payables 15 Inventory Total current liabilities 19 Trade receivables 22 Long term debt Total current assets 48 Net worth (equity and retained earnings) 60 Non current assets: Gross investment 50 Less depreciation 14 Total liabilities and net worth 84 Net long-term assets 36 Total assets 84 81