G Corporation has placed a term loan request with its lender and submitted the following balance sheet entries for the year just concluded and the pro forma balance sheet expected by the end of the current year. Construct a pro forma Statement of Cash Flows for the current year using the consecutive balance sheets and some additional needed information. The forecast net income for the current year is $210 million with $50 million being paid out in dividends. The depreciation expense for the year will be $100 million and planned expansions will require the acquisition of $300 million in fixed assets at the end of the current year. As you examine the pro forma Statement of Cash Flows, do you detect any changes that might be of concern either to the lenders credit analyst, loan officer, or both?

A B C D Output Area: Pro forma Statement of Cash Flows Cash flows from operations Net Income Depreciation Change in accounts rec. Change in inventory Change in other assets Change in accounts pay Change in taxes Net cash flow from operations Cash flows from Investment Activities Acquisition of fixed assets Net cash flow form investment activities Cash flows from Financing Activities Change in notes payable change in long-term debt Dividends paid Net cash flows from financing activities Change in Cash \begin{tabular}{r|} \hline300 \\ \hline300 \\ \hline 197 \\ \hline 200 \\ 50 \\ \hline 347 \\ \hline 51 \\ \hline \end{tabular}