Use the data given to develop a Statement of Cash flows for 2007and calculate change in cash from 2006 in operating, investing andfinancing activities and reconcile to beginning and endingcash.

Income Statements
	(Thousands of Dollars)
	Katie's Construction						Peer
	2006		2007		Proj. 2008		Com. Size
Net Sales	81,950		83,875		101,488.75		100.00
Cost of goods sold	66,000		70,950		85,849.5		81.00
Gross Profit	15,950		12,925		15,639.25		19.00
	0		0		0
S & A Expenses	8,360		9,997.9		11,163.762		10.00
Depreciation	1,100		902		1,045		1.00
Operating Profit	6,490		2,025.1		3,430.488		8.00
	0		0		0
Interest Expense	775.5		1,322.2		1,125.3		1.00
Pre-Tax Profit	5,714.5		702.9		2,305.188		7.00
	0		0		0
Tax (34%)	1,942.93		238.986		783.764		2.38
After Tax profit	3,771.57		463.914		1,521.424		4.62
	0		0		0
Dividends	1,377.2		165		660
Retained Earnings	2,394.37		298.914		861.424
No. of Shares	1,450		1,450		1,450
Stock Price/Share	13		9
	Balance Sheets
	(Thousands of Dollars)
	Katie's Construction						Peer
	2006		2007		Proj. 2008		Com. Size
Cash	1,760		1,427.8		1,760		3.5
Accounts Receivable	8,140		13,200		11,550		28
Inventory	14,609.1		20,900		15,381.3		47
Total Current Assets	24,509.1		35,527.8		28,691.3		78.5
	0		0		0
Net Fixed Assets	6,832.1		7,156.6		8,760.4		21.5
Total Assets	31,341.2		42,684.4		37,451.7		100
	0		0		0
Accounts Payable	4,620		8,800		6,600		15
Notes Payable	2,256.1		8,250		4,290		9
Accruals	2,255		3,242.8		3,567.08		7.5
Total Current Liabilities	9,131.1		20,292.8		14,457.08		31.5
	0		0		0
Long Term Debt	5,380.1		5,262.4		5,148.704		19
Total Liabilities	14,511.2		25,555.2		19,605.784		50.5
	0		0		0
Common Equity	16,830		17,129.2		17,845.916		49.5
Total Liabilities & Equity	31,341.2		42,684.4		37,451.7		100