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a) Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Please show all dollar amount to thousands of dollars.

b) On another sheet, create a statement of cash flows for 2019. Do not enter any numbers directly on this sheet. All formulas should be linked directly to the source on previous worksheets.

c) Using Excels outlining feature, create an outline on the statement of cash flows that, when collapsed, shows only the subtotals for each section.

d) Create a common-size statement of cash flows for 2019 that can be switched between using sales and the 2018 cash balance in the denominator.

Rhodes Corporation: Income Statements for Year Ending December 31 2019 2018 Sales 11,000,000 10,000,000 COGS 9,322,000 8,448,000 Gross profit 1,678,000 1,552,000 Depreciation and amortization 380,000 360,000 Selling & Admin. Expenses 290,000 280,000 Earnings before interest and taxes 1,008,000 912,000 Interest expense 220,000 100,000 Earnings before taxes 788,000 812,000 Taxes 197,000 203,000 Net income 591,000 609,000 Rhodes Corporation: Balance Sheets as of December 31 2019 2018 Assets Cash 842,000 500,000 Short-term investments 110,000 100,000 Accounts receivable 2,750,000 2,50 Inventories 1,650,000 1,500,000 Total current assets 5,352,000 4,600,000 Gross plant and equipment 4,813,000 4,375,000 Accumulated Depreciation 1,255,000 875,000 Net plant and equipment 3,558,000 3,500,000 Total assets 8,910,000 8,100,000 Liabilities & Owner's Equity Accounts Payable Accruals Notes Payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 1,100,000 550,000 384,000 2,034,000 1,100,000 3,134,000 4,312,000 1,464,000 5,776,000 8,910,000 1,000,000 500,000 200,000 1,700,000 1,000,000 2,700,000 4,400,000 1,000,000 5,400,000 8,100,000 Note: Tax rate 25% Rhodes Corporation: Income Statements for Year Ending December 31 2019 2018 Sales 11,000,000 10,000,000 COGS 9,322,000 8,448,000 Gross profit 1,678,000 1,552,000 Depreciation and amortization 380,000 360,000 Selling & Admin. Expenses 290,000 280,000 Earnings before interest and taxes 1,008,000 912,000 Interest expense 220,000 100,000 Earnings before taxes 788,000 812,000 Taxes 197,000 203,000 Net income 591,000 609,000 Rhodes Corporation: Balance Sheets as of December 31 2019 2018 Assets Cash 842,000 500,000 Short-term investments 110,000 100,000 Accounts receivable 2,750,000 2,50 Inventories 1,650,000 1,500,000 Total current assets 5,352,000 4,600,000 Gross plant and equipment 4,813,000 4,375,000 Accumulated Depreciation 1,255,000 875,000 Net plant and equipment 3,558,000 3,500,000 Total assets 8,910,000 8,100,000 Liabilities & Owner's Equity Accounts Payable Accruals Notes Payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 1,100,000 550,000 384,000 2,034,000 1,100,000 3,134,000 4,312,000 1,464,000 5,776,000 8,910,000 1,000,000 500,000 200,000 1,700,000 1,000,000 2,700,000 4,400,000 1,000,000 5,400,000 8,100,000 Note: Tax rate 25%

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