Nm A B C D E Task 8: Given the fast growth of HHEC.com during the year, Sophia and Francesca HHEC are concerned about the sources and uses of the company's cash. You explain to them that preparing a Statement of Cash Flows will provide answers to some of their HAPPY HOME Environmental Cleaning questions. In response, they give you HHEC.com's Year 3 income statement and balance sheet along with some additional information and ask you to prepare 1 HHEC.com's Statement of Cash Flows for Year 3. 2 3 Year 2 Year 3 4 Cash 25,000 29,500 5 Accounts Receivable 50,000 63,800 6 Inventory 45,000 38,000 7 Equipment 83,000 82,000 8 Accumulated depreciation 54,000 58,300 9 Accounts Payable 39,000 16,400 10 Sales Tax Payable 20,000 27,000 11 Notes Payable 3,000 5,400 12 Retained Earnings 79,000 92,200 13 Common Stock 6,000 11,000 14 Treasury Stock 3,000 2,000 15 Net Income 17,500 18,200 16 Dividends Payable 5,000 0 17 18 Note: In Year 3, equipment with a book value of $800 was sold for $900. 19 20 ANSWER 21 22