Comparative balance sheets and an income statement for 2008 are presented below for Nroklesah Company.

INCOME STATEMENT (2008)
Revenue 1,200
Cost of goods sold 750
Gross margin 450
Operating expenses:
Wage expense 200
Depreciation expense 30
Bad debt expense 20
Bond interest expense 10
Total operating expenses 260
Net operating income 190
Gain on sale of building 40
Net income before tax 230
Income tax 69
Net income after tax 161
Additional information
1. There were no write-offs of delinquent accounts during the year.
2. A building was sold during the year for $80.
Required
Analyze the data presented and prepare a cash flow statement for 4, 2008 with clear documentation (i.e., show your work) for each section of the statement. Use either the direct or the indirect method.
For the most recent year (2008) calculate the following ratios.
1. Current ratio
2. Inventory turnover
3. Rate of return on total assets
4. Accounts receivable turnover (assume all sales are on account)
5. Debtratio

Nroklesah Company Comparative Balance Sheets and Income Statement For the Years 2007 and 2008 BALANCE SHEETS Assets 2008 2007 Cash 200 285 Accounts receivable 350 290 (45) Allowance for bad debts (25) Inventory 260 135 Land 600 500 Buildings 295 250 Accumulated depreciation-buildings (65) (80) Total assets 1,595 1.355 Liabilities & Owners' Equity Liabilities Accounts payable 400 355 Wages payable 70 67 Dividends payable 30 47 Taxes payable 50 46 Long-term Bonds payable 100 100 Discount on bonds payable (8) (10) Total liabilities 642 605 Owners' Equity Common stock 650 550 Retained earnings 303 200 Total owners' equity 953 750 Total liabilities & owners' equity 1,595 1,355