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Use the below information to answer the following questions:

2007

2008

Sales

$

2870

$

3080

Depreciation

413

413

Cost of goods sold

987

1

121

Other Expenses

2

38

196

Interest

192

221

Cash

1505

1539

Accounts Receivables

1992

2244

Short

-

term Notes

Payable

291

273

Long

-

term debt

5040

5880

Net fixed assets

12,621

12,922

Accounts Payable

1581

1533

Tax rate

34%

34%

Inventory

3542

3640

*Payout ratio

52%

52%

*Dividends = payout ratio

x net income

A.

Create the Income Statements

for

2007 and

2008 (including dividends paid and

retained earnings).

B.

Create the Balance Sheets for 2007 & 2008.

C. Create the statement of Cash Flows for 2008.

D.

What is the CFFA for 2008