Lab #4 Student QUESTION 1 25 Marks Financial statement data for Carmono Company follows: Balance Sheet: Year 2 Year 1 Operating activities: Cash $3,000 $6,000 Net income Accounts receivable 22,000 24,000 Depreciation charges Inventory 50,000 40,000 Decrease in accounts receivable Plant and equipment 2,40,000 2,00,000 Increase in inventory Less: Accumulated depreciation -65,000 -50,000 Increase in accounts payable Total assets $2,50,000 $2,20,000 Net cash provided by operating activities Accounts payable $40,000 $36,000 Capital 1,50,000 1,45,000 Increase in plant and equipment Retained earnings 60,000 39,000 Net cash used for investing activities Total liabilities and shareholders' equity $2,50,000 $2,20,000 Increase in capital Income Statement, Year 2 Withdrawals Sales $2,75,000 Net cash used in financing activities Cost of goods sold 1,50,000 Gross margin 1,25,000 Operating expenses 90,000 Cash, beginning of the year Net income $35,000 Cash, end of the year REQUIRED: Prepare the Cash Flow Statement