What is the net cash flow for the current year for EcoPak Inc., shown in Exhibit 5–5?

EcoPak Inc.: Preliminary Analytical Procedures Data

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PRIOR YEAR CURRENT YEAR CHANGE PERCENT COMMON-SIZE COMMON-SIZE CHANGE BALANCE ANALYSIS BALANCE ANALYSIS AMOUNT ANALYSIS Assets $ 600,000 $ 200,000 Cash 14.78% 4.12% ($ 400,000) -66.67% Accounts receivable 500,000 80.00 12.32 900,000 18.56 400,000 Allowance for doubtful -0.99 (50,000) (40,000) -1.03 (10,000) 25.00 accounts Inventories 1,500,000 36.95 1,600,000 32.99 100,000 6.67 2.560,000 Total current assets 63.05 2,650,000 54.63 90,000 3.52 4,000,000 1,000,000 Property, plant, & 3,000,000 73.89 82.47 33.33 equipment (1,500,000) -37.11 Accumulated amortization -36.95 (1,800,000) (300,000) 20.00 $4.060,000 $ 790,000 Total assets 100.00% $4,850,000 100.00% 19.46% Liabilities and Equity $ 500,000 $ 400,000 Accounts payable 12.32% 8.25% ($ 100,000) -20.00% Bank loans, 11% 0.00 750,000 15.46 750,000 -33.33 Accrued interest 60,000 1.48 40,000 0.82 (20,000) Total current liabilities 560,000 13.79 1,190,000 24.53 630,000 112.50 Long-term debt, 10% 14.78 -33.33 600,000 400,000 8.25 (200,000) 1,590,000 Total liabilities 1,160,000 28.57 32.78 430,000 37.07 Share capital 2.000,000 49.26 2,000,000 41.24 0.00 Retained eamings 900,000 22.17 1,260,000 25.98 360,000 40.00 $ 790,000 Total liabilities and equity $4,850,000 $4,060,000 100.00% 100.00% 19.46% Income Sales (net) $4.000,000 $9.900,000 $ 900,000 10.00% 100.00% 100.00% 450,000 Cost of goods sold 6,750,000 75.00 7,200,000 72.73 6.67 Gross margin 2,250,000 20.00 25.00 2,700,000 27.27 450,000 General expense 1,590,000 17.67 1,734,000 17.52 144,000 9.06 300,000 3.03 0.00 Amortization 3.33 300,000 Operating income 360,000 4.00 666,000 6.46 306,000 85.00 60,000 Interest expense 0.67 40,000 0.40 (20,000) -33.33 Income taxes (40%) 2.59 120,000 1.33 256,000 136,000 113.33 $ 370,000 $ 180,000 3.74% $ 190,000 Net income 2.00% 105.56%