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  3. the following is the balance sheet and the income

The following is the balance sheet and the income statement for the two-consecutive year end...

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Finance

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The following is the balance sheet and the income statement for the two-consecutive year end of Company Iron Fist, a manufacturer of textile and garments. Prepare a statement of cash flow for the same year with income statement. (8 points) Year 2 90 180 160 45 120 475 910 Year 1 Year 2 Year 1 Cash 100 90 Short-term debt 80 Trade 200 230 Trade payables 170 receivables Inventories 170 Accrued expenses 40 Prepaid expenses 30 30 Long-term debt 140 Net fixed assets 390 390 Owner's equity 450 Total Assets 880 880 Total liabilities & 880 owner's equity Income statement in Year 2 Net Sales 1,350 Cost of good sold 970 Selling, general, and administrative expenses 165 Depreciation expense 50 Earnings before interest and taxes (EBIT) 165 Net interest expense Earning before tax (EBT) 145 Income after tax 45 Earnings after tax (EAT) 100 Dividends 75 20

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