In Excel, create an income statement and balance sheet for 2018 for Klein Manufacturing from the following information.

Cash $500

Accounts Receivable 20% of Sales

Accounts Payable 20% of Cost of Goods Sold

Notes Payable $800

Inventory $2,900

Gross Plant & Equipment $22,000

Long-term Debt $4,000

Common Stock $10,000

Sales $7,500

Cost of Goods Sold 40% of Sales

Depreciation Expense $1,200

Other Operating Expenses $1,000

Interest Expense 8% of Long-term Debt

Income Taxes 25% of Taxable Income

Since I did not give you retained earnings, you will need to calculate it. Retained earnings will be the amount necessary to balance your balance sheet. Accumulated depreciation for 2017 was $6,000.

a. What is the firms operating cash flow for 2018?

b. If gross plant & equipment for 2017 was $20,000, what is the amount of the net capital spending for 2018?

c. If Kleins current assets for 2017 were $4,750 and current liabilities for 2017 were $1,750 what is the change in the net working capital from 2017 to 2018?