Problem 1 (30pts): Fill in the missing values (in the six empty cells) in the income statement below. XYZ Corporation - Income Statement Revenue Allowance for Adjustments & Warranty Net Revenue Cost of Goods Sold Contribution Margin Sales, General, and Administrative Expenses: All Items except Depreciation Depreciation Operating Income Other Income (no writedowns) Net Income $000's What is the company's net cash flow in 2007? 2005 2500 25 2475 1450 1025 550 100 385 2006 2750 35 2715 1625 1090 575 100 20 2007 3000 40 2960 600 100 460 15 475 A prospective buyer declined to purchase the company. Using 10 words or less, why do you think that might be? At the end of 2006, the above company had retained earnings of $2 million. If they paid a $125 thousand dividend in 2007, what are its retained earnings at the end of 2007?