Ritter Corporation€™s accountants prepared the following financial statements for year-end 2012:

RITTER CORPORATION

Income Statement

2012

Revenue ..............................$750

Expenses .............................. 565

Depreciation .......................... 90

Net income ..........................$ 95

Dividends .............................$ 75

a. Explain the change in cash during 2012.

b. Determine the change in net working capital in 2012.

c. Determine the cash flow generated by the firm€™s assets during 2012.

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RITTER CORPORATION Balance Sheets December 31 2012 2011 Assets Cash Other current assets Net fixed assets $ 65 170 390 $625 $ 55 165 370 $590 Total assets Liabilities and Equity Accounts payable Long-term debt Stockholders' equity $125 145 355 $625 $115 140 335 $590 Total liabilities and equity