The following income statement and balance sheet information are available for two firms, Firm A and Firm B.
(a) Calculate the amount of dividends Firm A and Firm B paid using the information given.
(b) Prepare a statement of cash flows for each firm using the indirect method.
(c) Analyze the difference in the twofirms.

Income Statement For Year Ended December 31, 2009 Firm A Sales Cost of goods sold $1,000,000 700,000 300,000 Firm B $1,000,000 700 Gross proft Other expenses 300,000 120,000 10,000 20,000 150,000 75,000 $75,000 115,000 30,000 5,000 150,000 75,000 $75,000 Selling and administrative Depreciation Interest expense Earnings before taxes ncome tax expense Net Income Changes in Balance Sheet Accounts December 31, 2008, to December 31, 2009 Firm A Firm B Cash and cash equivalents Accounts receivable Inventory 0 +40,000 +40,000 Property, plant, and equipment 20,000 $+10,000 +5,000 -10,000 +70,000 Less accumulated depreciation 10,000) +30,000) $+90,000 +45,000 $-20,000 $-5,000 +2,000 -10,000 +18,000 Total Assets Accounts payable Notes payable (current) Long-term debt Deferred taxes (noncurrent) Capital, Stock Retained earnings +17,000 +20,000 +3,000 +70,000 $+90,000 +40,000 Total Liabilities and Equity S+45,000