Using the provided Balance Sheet and Income Statement for Cartwright Lumber, please creeate a simple Cash Flow statement for the years 2002, 2003, and Q1 of 2004, separating out the items into Cashflow from Operations, Cashflow from Investing, and Cashflow from Financing. ? For simplicity treat the various Notes payable and all the Long-term debt as a single debt-financing cashflow item, including the original loan payable to Henry Stark. ? Break out the changes in inventory, accounts receivables, accounts payable, and accrued expenses as separate cash items (rather than grouping them into a single working capital item). ? In case you are unfamiliar with spreadsheet modeling, note that the fastest way to calculate the cashflow items for all periods is to reference the cells from the income statement and balance sheet directly for your 2002 calculations using a "relative reference" (i.e. without the dollar signs) and then copy those operations to the right. Thus you should only need to impute the resulting cashflow items once see attachment for statements

\fA B C D E F Exhibit 1 Operating Statements for Years Ending December 31, 2001-2003, and for First 1 Quarter 2004 (thousands of dollars) 2001 2002 2003 First Quarter 2004 5 Net sales 1,697 $ 2,013 $ 2,694 $ 718 6 Cost of goods sold Beginning inventory 183 $ 239 $ 326 $ 418 CO Purchases 1,278 1,524 2,042 660 9 1,461 1,763 $ 2,368 1,078 10 Ending inventory 239 326 418 556 11 Total cost of goods sold 1,222 1,437 1,950 522 12 Gross profit 475 576 744 196 13 Operating expense 425 515 658 175 14 Interest expense 13 20 33 10 15 Net income before taxes 37 41 53 11 16 Provision for income taxes 6 $ 7 $ 9 2 17 Net income 31 34 $ 44 S 9 18 19 Source: Case author. 20 "In the first quarter of 2003 sales were $698,000 and net income was $7,000. Operating expenses include a cash salary for Mark Cartwright of $75,000 in 2001, $85,000 in 2002, $95,000 in 2003, and $22,000 in the first quarter of 2004. Cartwright also received some of the perquisites commonly taken by 21 owners of privately held businesses